Central Bank announces interest rate decision: What are market expectations?

The Monetary Policy Committee (MPC) of the Central Bank of the Republic of Turkey (CBRT), chaired by Fatih Karahan, will hold its seventh meeting of the year and announce its interest rate decision along with its rationale at 14:00. In its last meeting in September, the bank had kept the policy rate steady at 37 percent.

The majority of economists participating in economic surveys and respondents to the BloombergHT survey expect the CBRT to cut the policy rate by 100 basis points in October, lowering it to 36 percent. On the other hand, American investment bank JPMorgan had revised its expectation, citing that domestic political developments increased risks to the inflation and interest rate outlook. In its analysis on October 20, JPMorgan reduced its rate cut forecast from 150 basis points to 100 basis points.