Turkish Central Bank Holds Policy Rate at 50%

The decision to maintain the rate at 50% aligns with market expectations. The Central Bank had also kept the rate at 50% during its June meeting.

Economist Expectations

All economists surveyed by AA Finance had anticipated that the TCMB would hold the policy rate steady at 50%. According to the TCMB’s survey of market participants, the one-week repo auction rate was expected to remain at 50% by the end of the current month.

Meeting Schedule Changes

Due to international engagements, including the G20 Finance Ministers and Central Bank Governors Meeting and the Jackson Hole Economic Policy Symposium, the TCMB's meeting schedule has been adjusted. The meeting originally set for July 25 has been moved to July 23, and the August meeting has been rescheduled from August 22 to August 20.

Recent Rate Trends

In recent months, the Central Bank has made several adjustments to the policy rate:

• June: +650 basis points
• July: +250 basis points
• August: +750 basis points
• September, October, November: +500 basis points each
• December and January: +250 basis points each

The policy rate was held at 45% in February but was increased by 500 basis points to 50% in March. The rate has been held steady at 50% since April.