“CBRT May Lower Interest Rates by the End of 2021”

“CBRT May Lower Interest Rates by the End of 2021” In the research note of UniCredit Bank, it was stated that “CBRT May Lower Interest Rates by the End of 2021”. In the research note published by UniCredit the Central Bank Republic of Turkey (CBRT)’s rate increase decision was parallel with the expectations. According to the news in Bloomberg HT, the institution emphasized that the one-week repo auctions became the main policy instrument with the simplification of the monetary policy of the CBRT. In its report, UniCredit said, "The statements made yesterday regarding the return to orthodox monetary policy made the CBRT's monetary policy more predictable and reliable." Stating that the CBRT, "We think that the policy rate will be kept constant at this level until the downward inflation trend starts next year." UniCredit predicted that the CBRT could reduce interest rates to 11 percent again towards the end of 2021. Stating that the most important change for them is the articulation of simplification steps in the policy, UniCredit said that the CBRT's intention to increase its foreign exchange reserves is also of great importance. UniCredit, which predicts that the inflation rate will rise in the coming months to 13 percent in April 2021, estimates that the inflation rate will be 11.4 percent by 2022.     Source: Bloomberg HT