Central Banks

Turkey Seen Awaiting More Evidence Before Starting to Cut Rates

  • Central bank set to hold interest rates for sixth month
  • Inflation must cool further before easing, economists say
Lock
This article is for subscribers only.

Turkey’s central bank will probably keep its main interest rate unchanged for a sixth straight month, as a lack of significant improvement in underlying inflation pushes the monetary authority to stick with a tighter bias.

All economists surveyed by Bloomberg expect the Monetary Policy Committee to hold the one-week repo rate at 50%. Annual inflation fell by almost 10 percentage points in August, but remains some way above the central bank’s year-end projection of 38%.