Survey shows interest rates to rise in Turkey

By Erhan Cihan Unal

ISTANBUL (AA) – The Central Bank of the Republic of Turkey (CBRT) is expected to hike interest rates this week, according to an Anadolu Agency survey on Monday.

On Thursday, the CBRT will hold its seventh Monetary Policy Committee meeting this year and announce its decision about interest rates.

All economists surveyed by Anadolu Agency expect a rise in one-week repo rate with a median of 425 base points, i.e. 4.25 percentage points.

A group of 17 economists' forecasts vary between 275 base points and 725 base points increase.

At the bank's sixth Monetary Policy Committee meeting this year, on July 24, the CBRT kept its one-week repo rate — also known as the bank's policy rate — constant at 17.75 percent.

According to the bank's schedule, the next three meetings are to be held on Sept. 13, Oct. 25, and Dec. 13.

On Sept. 3, the CBRT announced that it will continue to use all available instruments in pursuit of the price stability objective.

Currently, the interest rates are below the annual inflation level in Turkey.

According to the country's statistical authority TurkStat, Turkey's annual inflation was 17.90 percent in August, up from July's figure of 15.85 percent.

*Muhammed Ali Gurtas contributed this report from Ankara