CBRT is not Expected to Change Interest Rates

CBRT is not expected to change interest rates. Bloomberg HT survey predicted that the interest rate will be kept constant.

According to the survey of Bloomberg HT on Central Bank of the Republic Turkey's (CBRT) interest rate decision, the expectation of the markets was that the interest rate will be kept constant. The median expectation of 19 institutions, which participated in the Bloomberg HT Research Unit's survey on the interest rate decision of the Central Bank of the Republic Turkey, was that the interest rates would be left unchanged in May, and the interest rates would be reduced to 16 percent at the end of the year. On the question of when the CBRT will make the first rate cut, two institutions stated that they expect the first rate cut in June, four institutions in July, five institutions in August, five in September, and three in October. While the institution expecting the most interest rate cut at the end of the year stated that the interest rates will be reduced to 14.75 percent, one institution estimated that the interest will be increased by 300 basis points to 22 percent. While some foreign institutions did not expect a reduction for the interest rate decision to be released in the May MPC meeting, they predicted different dates for the first rate cut to be made. Barclays predicted that the CBRT will start to cut rates for the first time in the fourth quarter and cut by 350 basis points. ING Bank, on the other hand, stated that they anticipate a reduction in interest rates towards the end of the third quarter, while Deutsche Bank stated that they expect an interest rate cut as of July.     This news has contributions of Bloomberg HT.