Markets await Central Bank's interest rate decision

The Monetary Policy Committee, led by Governor Fatih Karahan, will unveil its verdict at 2:00 PM local time (11:00 AM GMT).

At the previous meeting in January, the Bank surprised markets by raising the policy rate by a significant 250 basis points to 45%, one of the highest in the world. This came amidst surging inflation, exceeding 65% year-on-year.

This time around, economists are largely predicting the Bank to hold fire and keep the policy rate unchanged at 45%. However, all eyes will be on the accompanying statement for insights on the Bank's future monetary policy direction and its strategies for tackling inflation and managing liquidity.

Despite the expectation of a hold, the median forecast for the policy rate at the end of 2024 among economists remains relatively low at 36.25%. This reflects lingering concerns about inflation and the uncertainty surrounding the Bank's commitment to its stated goal of price stability.

The decision today will likely have a significant impact on the Turkish economy and financial markets. Stay tuned for further updates as the announcement unfolds. (ILKHA)