The US-based investment bank Goldman Sachs said that the Central Bank of the Republic of Turkey (CBRT) is expected to reduce the policy rate by 100 basis points every month until the end of the year.
“As we see the CBRT as an institution that has no connection with the monetary policy stance, we expect the CBRT to continue to reduce interest rates, and we anticipate a 100 basis point rate cut every month until the end of the year,” Goldman Sachs said in a statement yesterday.
The statement also stated that the restrictive financing and macro-prudential policies so far may noticeably loosen as the elections approach. (Reuters)
IT HAS DROPPED TO 12 PERCENT
On the other hand, President Recep Tayyip Erdoğan made a statement that interest rates would fall to single digits by the end of the year. Following the CBRT’s unexpected 100 basis point interest rate cuts in the last two months, the policy rate is at 12 percent. rate announced the decision. In the summary of the meeting, “The Monetary Policy Committee (Board) decided to reduce the one-week repo auction rate, which is the policy rate, from 13 percent to 12 percent.” it was said.