Turkish CB rate decision looming

ANKARA, TURKEY - April, 2015: Central Bank of Turkey Enterance - Görsel
Turkish CB rate decision looming

Markets focused on Turkish Central Bank interest rate decision tomorrow. The meeting, which will be held on Wednesday, will be the fourth Monetary Policy Committee meeting of the bank this year. It is also important in terms of being the last meeting to be held before the critical Istanbul mayoral elections. The markets mostly expect the bank pass this meeting and make no rate change. Despite the declining inflation figures, there is no favorable environment for interest rate cuts, the surveys show. It will be the bank’s fourth meeting so far. During the last meeting held on April 25, the bank had kept its interest rate policy constant at 24 percent. “Recently released data show that the rebalancing trend in the economy has continued,” the bank had said in a statement. It was the bank’s third of eight Monetary Policy Committee (MPC) meetings scheduled for 2019. ”External demand maintained its relative strength while economic activity showed sluggish pace, partly due to tight financial conditions,” the bank had said. “The current account balance is expected to maintain its improving trend.”