CBRT May Continue to Increase Interest Rates

CBRT May Continue to Increase Interest Rates CBRT may continue to increase interest rates. Economists predict that the Central Bank will continue to increase interest rates. Economists who participated in the interest rate decision survey of HT Bloomberg's Research Unit, had predicted that CBRT would continue its tightening steps. The median expectation of the 21 institutions participating in the said survey is that the policy rate will increase by 150 basis points at the last meeting of the year. The institution that shares the lowest expectation, expects the interest to increase by 75 basis points to 15.75 percent, while the institution that shares the highest expectation, expects it to increase to 17 percent with an increase of 200 basis points. In the first meeting of the new CBRT president Naci Ağbal, the hardest interest rate increase in 2 years was made, and accordingly, the policy rate was increased by 475 basis points to 15 percent. The Central Bank decided to make the funding from weekly repo, and the decision text included statements that the tightness of the monetary stance would be maintained with determination. CBRT will announce its interest rate decision at the last MPC meeting of the year which will be held on Thursday.     Source: Bloomberg HT