The Monetary Policy Committee chaired by Fatih Karahan will announce the fourth interest rate decision of the year to the public on Thursday at 2 p.m., after January, March and April.
At the last meeting in April, the bank decided to keep the interest rate for the one-week repo auction, the key interest rate, constant at 37 percent.
Geopolitical developments
At the previous meeting, the war and increasing geopolitical tensions, particularly on the US-Israel-Iran line, triggered uncertainty in the global economy. In view of these developments, the CBRT, like many other central banks in other countries, paused the interest rate cutting process as a “precautionary measure” and kept the interest rate constant. The bank, which is closely monitoring the impact of high energy prices and volatility on the inflation outlook, said it would maintain its cautious stance.
All eyes turned from global markets to CBRT
As expectations of central banks in developed countries, particularly the US Federal Reserve (Fed), move in a more “hawkish” direction due to the impact of geopolitical tensions, the stance of the CBRT is of great importance in this process. The Board, assessing the changes in the main trend of inflation and the signals of a slowdown in economic activity, will determine policy steps to ensure that tightening is consistent with the disinflation process.
The message “Dress” is on the table
In its previous assessments, the Bank reiterated that the monetary policy stance would be tightened if a significant and sustained deterioration in the inflation outlook was expected. The decision text, to be announced on June 11, is expected to detail both the measures to be taken against global risks and the strategy to be pursued in line with local inflation targets.
Bir yanıt yazın