Daily Sabah logo

Politics
Diplomacy Legislation War On Terror EU Affairs Elections News Analysis
TÜRKİYE
Istanbul Education Investigations Minorities Expat Corner Diaspora
World
Mid-East Europe Americas Asia Pacific Africa Syrian Crisis Islamophobia
Business
Automotive Economy Energy Finance Tourism Tech Defense Transportation News Analysis
Lifestyle
Health Environment Travel Food Fashion Science Religion History Feature Expat Corner
Arts
Cinema Music Events Portrait Reviews Performing Arts
Sports
Football Basketball Motorsports Tennis
Opinion
Columns Op-Ed Reader's Corner Editorial
PHOTO GALLERY
JOBS ABOUT US RSS PRIVACY CONTACT US
© Turkuvaz Haberleşme ve Yayıncılık 2023

Daily Sabah logo

عربي
  • Politics
    • Diplomacy
    • Legislation
    • War On Terror
    • EU Affairs
    • Elections
    • News Analysis
  • TÜRKİYE
    • Istanbul
    • Education
    • Investigations
    • Minorities
    • Expat Corner
    • Diaspora
  • World
    • Mid-East
    • Europe
    • Americas
    • Asia Pacific
    • Africa
    • Syrian Crisis
    • Islamophobia
  • Business
    • Automotive
    • Economy
    • Energy
    • Finance
    • Tourism
    • Tech
    • Defense
    • Transportation
    • News Analysis
  • Lifestyle
    • Health
    • Environment
    • Travel
    • Food
    • Fashion
    • Science
    • Religion
    • History
    • Feature
    • Expat Corner
  • Arts
    • Cinema
    • Music
    • Events
    • Portrait
    • Reviews
    • Performing Arts
  • Sports
    • Football
    • Basketball
    • Motorsports
    • Tennis
  • Gallery
  • Opinion
    • Columns
    • Op-Ed
    • Reader's Corner
    • Editorial
  • TV
  • Business
  • Automotive
  • Economy
  • Energy
  • Finance
  • Tourism
  • Tech
  • Defense
  • Transportation
  • News Analysis

Turkish central bank to go on with up to 100-point rate cut: Surveys

by DAILY SABAH WITH AGENCIES

ISTANBUL Oct 19, 2021 - 1:15 pm GMT+3
The headquarters of the Central Bank of the Republic of Turkey (CBRT) is seen in the capital Ankara, Turkey, May 6, 2020. (Getty Images)
The headquarters of the Central Bank of the Republic of Turkey (CBRT) is seen in the capital Ankara, Turkey, May 6, 2020. (Getty Images)
by DAILY SABAH WITH AGENCIES Oct 19, 2021 1:15 pm
RECOMMENDED
A crude oil tanker sails in the Bosporus, on its way to the Mediterranean Sea, in Istanbul, Türkiye, Dec. 11, 2022. (Reuters Photo)

Türkiye registers better-than-expected current account gap

current-account-balance

The Central Bank of the Republic of Turkey (CBRT) is expected to forge ahead this week with another rate cut of either 50 or 100 basis points, according to surveys.

If delivered, it will follow an unexpected cut from last month, when the central bank lowered its benchmark policy rate – the one-week repo rate – to 18% from 19%.

Ten of 21 economists polled by Reuters expect the bank to deliver a cut by 50 points to 17.50% on Thursday, while another 10 foresee a 100-point cut to 17%.

One predicted no change, while at least three contributors declined to respond, citing difficulties guessing the central bank’s moves.

The median in the Anadolu Agency (AA) survey of 26 economists stands at a cut of 50 basis points. Six economists expected no change, while eight predicted the rate to fall by 50 basis points, one by 75 basis points, and 11 by 100 basis points.

According to the median estimate in a Bloomberg survey of 15 analysts, the Monetary Policy Committee (MPC) is expected to deliver a cut of 100 basis points.

The MPC meeting comes a week after Turkey dismissed two of its central bank deputy governors and another high-level official.

Suggestions that some of the three policymakers opposed last month’s rate cut were dismissed by CBRT Governor Şahap Kavcıoğlu, who said Friday that they left either of their own choice or because the bank wanted it.

Speaking to reporters outside the central bank after meeting main opposition Republican People's Party (CHP) leader Kemal Kılıçdaroğlu, Kavcıoğlu said people were making wrong assumptions about the removal of the MPC members and that there were no problems at the central bank.

The policymakers “were there when the rate was cut and there when it was raised” over the years, the governor said. It would not be right to “seek for something” behind the dismissals, he added.

Last month’s cut was seen as premature by some, given it left real yields in negative territory, as inflation rose to 19.58% in September. The core “C” measure – which the central bank has been stressing lately – rose to near 17%.

Kavcıoğlu said the bank would consider domestic and international developments before making a rate decision at this week’s MPC meeting and would make “the most correct decision.”

“We will work with the technical team until Oct. 21 and make a decision by analyzing the data and developments,” he noted. “No one should doubt that the central bank will make the right decision.”

He also said the rate cut did not on its own cause the Turkish lira depreciation, citing recent dollar strength.

The median estimate of 13 economists who participated in the Reuters poll for the policy rate at year-end stood at 16.5%, with forecasts ranging between 17% and 16%.

The median in the AA survey for the year-end policy rate stands at 17%.

The central bank forecast inflation would hit 14.1% by the end of the year.

The country’s medium-term economic program, announced last month, expects it to fall to 16.2% by the end of the year and hit 9.8% by the end of 2022.

RECOMMENDED
A crude oil tanker sails in the Bosporus, on its way to the Mediterranean Sea, in Istanbul, Türkiye, Dec. 11, 2022. (Reuters Photo)

Türkiye registers better-than-expected current account gap

current-account-balance
  • shortlink copied
  • Last Update: Oct 19, 2021 2:21 pm
    RELATED TOPICS
    fight-against-terrorism DEUTSCHE-BANK US-LIBYA-RELATIONS
    KEYWORDS
    monetary policy turkish central bank interest rates inflation Şahap kavcıoğlu
    The Daily Sabah Newsletter
    Keep up to date with what’s happening in Turkey, it’s region and the world.
    You can unsubscribe at any time. By signing up you are agreeing to our Terms of Use and Privacy Policy. This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
    An amateur photographer Vincent Cornelissen captures a bean goose flying upside down. (Photo from Instagram @b0unce1971)

    It is showing off: Photographer captures goose flying upside down

    ANIMALS-ARCHIVES
    Parts of the newly completed last section of the Northern Marmara Motorway, Istanbul, Turkey, May 19, 2021. (DHA Photo)

    Turkey raises speed limits on highways starting from July

    SPEED-LIMIT

    Is Lionel Messi's G.O.A.T status officially sealed?

    QATAR-WORLD-CUP-2022

    Istanbul's consulate chronicles: Sudhi Choudhary, Consul General of India

    SUDHI-CHOUDHARY
    No Image
    Climate change: Eerie ice caves appear, dooming Austria's glaciers
    PHOTOGALLERY
    • POLITICS
    • Diplomacy
    • Legislation
    • War On Terror
    • EU Affairs
    • News Analysis
    • TÜRKİYE
    • Istanbul
    • Education
    • Investigations
    • Minorities
    • Diaspora
    • World
    • Mid-East
    • Europe
    • Americas
    • Asia Pacific
    • Africa
    • Syrian Crisis
    • İslamophobia
    • Business
    • Automotive
    • Economy
    • Energy
    • Finance
    • Tourism
    • Tech
    • Defense
    • Transportation
    • News Analysis
    • Lifestyle
    • Health
    • Environment
    • Travel
    • Food
    • Fashion
    • Science
    • Religion
    • History
    • Feature
    • Expat Corner
    • Arts
    • Cinema
    • Music
    • Events
    • Portrait
    • Performing Arts
    • Reviews
    • Sports
    • Football
    • Basketball
    • Motorsports
    • Tennis
    • Opinion
    • Columns
    • Op-Ed
    • Reader's Corner
    • Editorial
    • Photo gallery
    • Jobs
    • privacy
    • about us
    • contact us
    • RSS
    © Turkuvaz Haberleşme ve Yayıncılık 2021