Turkey: Economists expect interest rate hike

By Murat Aslan

ISTANBUL (AA) – Economists expect the Turkish Central Bank to hike interest rates next week, an Anadolu Agency survey on Friday found.

On Thursday, at its last meeting for the year, the bank’s Monetary Policy Committee will announce its decision on interest rates.

The median forecast by economists surveyed by Anadolu Agency was a rise in the one-week repo rate of 150 base points, i.e. 1.5 percentage points.

Forecasts by the 21 economists surveyed range between a 75 base points and 200 base points increase.

In its last meeting on Nov. 19, the Central Bank increased its one-week repo rate – also known as the bank's policy rate – from 10.25% to 15% while taking steps to simplify the operational framework of monetary policy.

Over the course of this year, starting with a rate of 12%, the bank has raised its benchmark policy rate a total of 3,000 basis points.

Speaking on Monday, Naci Agbal, the bank’s governor, said the risk of upward inflation will require a tight and decisive monetary policy stance in 2021, adding that it will be tightened if needed.