Interest Rate in Turkey
Turkey - Interest Rate
Central Bank keeps rates unchanged in March
At its monetary policy meeting on 6 March, the Central Bank of the Republic of Turkey (CBRT) left the one-week repo rate unchanged at 24.00% for the fourth consecutive meeting.
The Bank’s decision to keep rates at their current high level was motivated by a desire to support the lira and ensure that price pressures continue to ebb. Although inflation has dipped from the peak of over 25% reached in October, it remains elevated and, according to the Bank, “risks on price stability continue to prevail”. As such, any premature monetary loosening would have risked depressing the lira and leading to a resurgence in inflation. On the other hand, in light of subdued domestic demand and the gradual improvement in inflation metrics, the Bank saw no need for further tightening.
In its communiqué, the Bank’s tone was unchanged from its previous meeting in January. As such, the CBRT reiterated its commitment to a tight monetary stance until the “inflation outlook displays a significant improvement”, taking into account fiscal policy, inflation expectations and the lagged impact of previous rate hikes. It also left the door open to future rate hikes if required.
Turkey Interest Rate Forecast
Our panelists see the CBRT loosening its stance later this year as inflation drops off. They see the one-week repo rate ending 2019 at 19.14% and 2020 at 15.05%.
Turkey - Interest Rate Data
|Policy Interest Rate (%)||4.50||8.25||7.50||8.00||8.00|
5 years of economic forecasts for more than 30 economic indicators.
Turkey Interest Rate Chart
Source: Central Bank.
|Bond Yield||14.95||-0.09 %||Mar 11|
|Exchange Rate||5.45||-0.85 %||Mar 11|
|Stock Market||100,850||1.41 %||Mar 11|
Get a sample report showing our regional, country and commodities data and analysis.
Start Your Free Trial
Start working with the reports used by the world’s major financial institutions, multinational enterprises & government agencies now. Click on the button below to get started.
Turkey: Industrial production contracts in January in annual terms, but sequential data paints a slightly more positive picture
March 14, 2019
Industrial output dropped 7.3% in January in calendar-adjusted year-on-year terms.
March 11, 2019
The current account balance recorded a USD 0.8 billion deficit in January, smaller than December’s revised USD 1.5 billion deficit (previously reported: USD 1.4 billion deficit) and down markedly from the USD 7.0 billion deficit recorded in the same month a year prior.
March 11, 2019
According to data released by Turkstat on 11 March, the Turkish economy shrank 3.0% in the fourth quarter of last year, with the aftereffects of the currency crisis cooling activity.
March 6, 2019
At its monetary policy meeting on 6 March, the Central Bank of the Republic of Turkey (CBRT) left the one-week repo rate unchanged at 24.00% for the fourth consecutive meeting. The Bank’s decision to keep rates at their current high level was motivated by a desire to support the lira and ensure that price pressures continue to ebb.
March 4, 2019
Consumer prices in Turkey rose 0.16% from the previous month in February, down from January’s 1.06% increase.