[ad_1]
Today, all eyes are on the decision on the interest rate that will be announced by the Monetary Policy Committee (MPC) of the Central Bank at 2:00 p.m. Last month, the MPC raised its policy rate, the one-week buyback rate, by 200 basis points, from 8.25 percent to 10.25 percent.
Thus, the Center raised interest rates for the first time in 2 years last month. Today a new increase is expected. There are different opinions on the amount of this increase. Analysts at Goldman Sachs announced that they expect a 300-point increase in the latest report, while JPMorgan expects 200 and Morgan Stanley an increase of 150 basis points.
The 17 economists who participated in the AA Finans MPC meeting market expectations survey predicted an increase in interest in policies. The expectations of economists who expected an increase in the interest rate ranged between 100 basis points and 200 basis points.
Similarly, the 17 institutions participating in the Reuters poll expect an increase in the policy rate. The median expectation of the forecasts is that the policy rate will increase from 10.25 percent to 12 percent. Estimates of increase range from 100 to 300 basis points.
INFLATION AND CORONAVIRUS HIGHLIGHTS
While the PPK raised interest rates last month, it claimed that it would slow down the disinflation process and support price stability. He stressed that he will continue to use the published summary of the MPC Board of Directors meeting according to the coronavirus outbreak means price stability and financial stability targets in hand, looking at the effects of Turkey’s economy.
Finally, TurkStat announced that annual inflation for September was 11.75 percent and the twelve-month average was 11.47 percent. In August, annual inflation was 11.77 percent and the twelve-month average inflation was 11.27 percent.
The dollar fell from 7.71 lira to 7.57 lira on September 24, when the last rate hike decision was made. However, he was unable to hold onto this level. As of today, the dollar is at the level of 7.81 lire.
RİSK PRİMİNDE ARTIŞ
MPC is addressed in the summary of Turkey’s risk premium has fluctuated since last month’s decision to increase. However, to date, it is up 1.5 percent compared to last month.
Similar movements were seen in risk premiums for most developing countries as the coronavirus epidemic continued unabated.
All these events and the tightening measures adopted by the Central Bank reinforced the expectations of a new decision to raise interest rates at today’s meeting.
