WITH INFLATION AT 5-YEAR LOW, MARKETS EYE MODEST RATE CUT
For the first time in nearly five years, Turkey’s annual inflation rate slipped below 30%, giving the central bank room to consider easing monetary policy at its meeting on Oct. 22.
Analysis
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For the first time in nearly five years, Turkey’s annual inflation rate slipped below 30%, giving the central bank room to consider easing monetary policy at its meeting on Oct. 22.
The central bank has resumed one-week repo auctions after a nearly six-month pause, an operational shift that effectively lowers market funding costs and paves the way for official policy rate cuts.
Central Bank Governor Fatih Karahan said interest rate cuts can only be effective when inflation is under control.
The central bank may pause its easing cycle at the March 12 meeting amid growing uncertainty caused by the U.S. attack on Iran.
The Central Bank eased interest rates more cautiously at its latest meeting, following a sharper-than-expected rise in inflation in September.