Turkey Likely to Take Aim at Excess Liquidity, Hold Key Rate
- Analysts unanimously predict key rate staying on hold Tuesday
- Policymakers are waiting for inflation expectations to improve
Residential and commercial buildings in Istanbul, Turkey.
Photographer: David Lombeida/BloombergThis article is for subscribers only.
Turkey’s central bank will probably focus on draining excess lira liquidity and alternative tightening measures as it looks to keep interest rates on pause for a fourth straight month.
Economists surveyed by Bloomberg unanimously forecast the one-week repo rate will remain unchanged at 50% on Tuesday. Deutsche Bank AG and Bloomberg Economics are among those who expect additional policies that could range from higher reserve requirements for lenders to an increase in the lower bound of the central bank’s rate corridor.