When will the Central Bank’s interest rate decision be announced? Eyes on the interest rate for August…

As a result of Erdogan’s policies until recently, the CBRT reduced the one-week repo rate from 19% in 2021 to 8.5%. Despite high inflation ahead of the election, interest rates were kept low and CBRT reserves were used to prevent the TL from falling further. Although currency sales continued after the elections, the system became more transparent.

WHEN WILL THE DECISION OF INTEREST BE ANNOUNCED?

The Central Bank (CBRT) interest rate decision for August 2023 will be announced on Thursday, August 24 at 2:00 p.m.

HOW LONG IS THE DECISION OF INTEREST WAITING?

The 17 economists polled by Reuters expect a policy rate increase of 17.5%, while forecasts are in the range of 18% to 20.5%. Eight economists expect 250 basis points, four economists 200 basis points, three economists 150 basis points, and one economist 50 and 300 basis points in the survey.

In the survey, the median of end-2023 interest rate projections is 25%. Estimates are in the 20% to 30% band. As a result of Erdogan’s policies until recently, the CBRT reduced the one-week repo rate from 19% in 2021 to 8.5%. Despite high inflation ahead of the election, interest rates were kept low and CBRT reserves were used to prevent the TL from falling further. Although currency sales continued after the elections, the system became more transparent. While the CBRT took the first step this weekend, aiming to reduce the KKM, by setting a target for banks to transition their currency-protected deposit accounts (KKM) to TL deposits, which are approaching 125 billion dollars, this weekend, according to bankers, this decision is an indication that interest rate increases will remain limited.