CBRT - Central Bank of the Republic of Turkey

19-JUL-2024

CBRT Announcement (Thu):

The CBRT is likely to maintain its rates at its meeting on Tuesday, which has been rescheduled from the usual Thursday announcement. Expectations for the Weekly Repo Rate to be maintained at 50.00% come amid the cautious policy stance widely telegraphed by the central bank and its governor Karahan. Turkey's inflation slowed in June, sparking talks of potential rate cuts. Despite speculation of a rate cut due to slowing inflation, Karahan stressed maintaining a cautious stance and emphasized that policy actions must align with hitting the inflation target in 2025 and beyond. The central bank projects inflation to decrease to 38% by the end of 2024, 14% in 2025, and 9% in 2026. Some suggest the central bank aims to see clearer improvements in inflation expectations before easing policy.