Central Banks
Turkey on Cusp of Ending Rate Hikes With Last Step Up to 45%
- Central bank unanimously expected to lift rate for eighth time
- Economists look for policy guidance ahead of election in March
A vendor at a vegetable stall in Ankara, Turkey.
Photographer: Kerem Uzel/BloombergThis article is for subscribers only.
Turkey’s central bank is set to cap off one of its longest-ever cycles of monetary tightening with a likely final hike on Thursday, as it convenes for a meeting briefly overshadowed by a controversy around Governor Hafize Gaye Erkan.
There’s little drama surrounding the decision itself after policymakers said last month increases will end “as soon as possible,” following seven hikes that quintupled interest rates since Erkan took over in June. In the first unanimous Bloomberg survey during the governor’s term, all economists predict the benchmark will rise to 45% from 42.5%.