Turkish Central Bank expected to keep rates on hold.

By bne IntelliNews April 22, 2014

The Central Bank of Turkey is expected to keep its rates on hold at the monetary policy committee meeting scheduled for April 24 despite pressure from the government.

A CNBC-e poll of 18 economists showed that the Bank is expected to keep its policy rate (one-week repo) unchanged at 10%. Two economists expect a cut in the overnight lending rate (currently at 12%) between 50bp and 25bp. Three of the economists polled by CNBC-e are looking for a cut in TRY reserve requirement.

Earlier this month, PM Recep Tayyip Erdogan called for a rate cut, arguing that the AKP’s strong showing in the March 30 local elections boosted markets and lower interest rates would encourage investments. The PM said that the bank should review its interest rates at an emergency meeting. In response to Erdogan’s remarks, the central bank governor Erdem Basci said that no large rate cut should be expected. Interest rates should be lowered gradually, and an interim monetary policy committee meeting is not necessary, Basci added.

Related Articles

Turkey to refuse extradition of all suspects to US unless Washington hands over Gulen says Erdogan

Turkey will not extradite any terror suspects to the US if Washington continues to refuse to hand over Fethullah Gulen, President Recep Tayyip Erdogan said on January 11. Ankara blames the ... more

Turkey rebukes Arab nations for feeble response to Trump’s Jerusalem move ahead of Muslim summit in Istanbul

Turkey has chided what it sees as a feeble Arab reaction to Donald Trump’s decision to reverse decades of US foreign policy by recognising Jerusalem as Israel’s capital. Speaking on December ... more

Russia said to offer Turkey partial financing for S-400 anti-aircraft missile system purchase

Russia is to offer Turkey partial financing for Ankara’s acquisition of S-400 surface-to-air missile systems, Interfax news agency quoted a Russian presidential aide as saying on December 12. ... more

Dismiss