Central Banks
Slowdown in Turkey’s Inflation Sets Stage for Third Rate Cut
- The central bank is expected to lower rates to 42.5% from 45%
- Inflation dipped below 40% in February, fueling rate cut calls
This article is for subscribers only.
Turkey’s central bank is preparing to cut its main interest rate for a third consecutive meeting, seizing momentum from better-than-anticipated February inflation data.
The Monetary Policy Committee led by Governor Fatih Karahan is expected to lower the rate to 42.5% from 45% on Thursday, according to the median forecast of a Bloomberg survey. That will build on the pair of 250 basis-point reductions at the last two announcements, with decisions dictated by a “meeting-by meeting” strategy.