The Central Bank of Turkey (CBT) will perform on July 24 the Monetary Policy Committee (MPC) predicts an increase in the policy interest rate would be at the meeting. Economists predict that the central bank will raise the one-week repo auction interest rate, which is the policy rate at this month's PPK meeting, by 75 basis points or more.
Erkin Isik, Director of Financial Markets Strategy of the Turkish Economy Bank, who is in the evaluations of the Anadolu Agency correspondent;
It reminded that both the annual increase in service prices and the quarterly trend for service prices, which were thought to be important indicators in terms of pricing pressures in June, showed a sharp rise. "I think that the view of inflation is even worse than anticipated when these decisions are taken," he said, pointing to a marked deterioration in inflation.
Turkey Macro View Consulting Executive Director İnanç Sözer; Although the market interest rates continue to provide credibility to the CBRT, we predict that inflation will rise from 15.4 percent to 17 percent in the short term and that the difficulty of saying that inflation is behind the peak until October is likely to narrow the CBRT's maneuvering area.
İş Portfolio Macroeconomic Research Division Director, Hande Şekercci said that the annual inflation is expected to increase to 16.2 percent in July, according to the Central Bank's Survey of Expectations. While long-term inflation expectations are on the rise, he pointed out that this would increase the likelihood of a permanent deterioration in pricing behavior.
Economists, the Central Bank of Turkey (CBT) will perform on July 24 the Monetary Policy Committee (MPC) predicts an increase in the policy interest rate would be at the meeting. Economists predict that the central bank will raise the one-week repo auction interest rate, which is the policy rate at this month's PPK meeting, by 75 basis points or more.
Eric Işık, Director of Financial Markets Strategy, who is in the evaluations of the AA correspondent, reminded that both the annual increase in service prices and the quarterly trend of the services prices, which are thought to be important indicators in terms of pricing pressures in June, are showing a sharp rise.
Işık pointed out that the Central Bank pointed to a strong deterioration trend in inflation and said "The Central Bank is having a strong rate of interest increase of 5 points in April-June, and I think that the inflation outlook is even worse than expected when these decisions are made. In this respect, 75-100 base points I think it will increase. " Işık also stressed that the current agenda item of the markets is the framework of the economic policy to be implemented in the coming period.
Turkey Macro ViewConsulting executive director Faith Sözer also said that they believe that market-friendly economic policies and risk premiums will fall soon.
However, although the market interest rates continue to provide credibility to the CBRT, inflation is expected to remain at the low end of the year, even though the market interest rates continue to provide credibility to the CBRT, adding that the CBRT's policy rate increase by 75 basis points would be beneficial to macroeconomic stability as a precaution against weak TL and inflation expectations. from 15.4 per cent to 17 per cent, and that the difficulty of saying that it is lagging behind in inflation until the month of October will narrow the scope of the CBRT's maneuvering. If the CBRT is supported by disinflationary fiscal policies and strong structural reforms, we think that the pressure on market interest rates will be eased earlier than expected. "
The market expectation survey for AA Finance's PPK meeting was concluded with the participation of 18 economists. Except for one of the economists participating in the survey, others expect an increase in repo auction interest rate (policy rate) with a one-week maturity. One economist estimates that it will increase by 50 base points, 2 75 basis points, 7 100 base points, 4 125 base points and 3 150 base points. Economists' expectation of an increase in the policy rate was 100 basis points. At the PPK meeting last month, the policy rate was raised from 16.5 percent to 17.75 percent.