Markets will be focused on the meeting of the Central Bank of Turkey tomorrow as the body convenes to decide interest rates. While global stock markets were under pressure to sell on the last trading day of last week, domestic markets, which were flat last week, will be focusing on the decisions of the Monetary Policy Board (PPK) of the Central Bank of the Republic of Turkey (CBRT).

Before the PPK meetings this week, the BIST 100 index, which remained flat throughout last week, also balanced right above the dollar-Turkish lira parity of 2.68. Analysts said that the BIST 100 index fluctuates similarly to the foreign exchange rates and therefore, the decisions of PPK this week will determine the direction of the index and will mainly affect the banking sector.

According to a poll by CNBC-e, a channel focusing on economics, little change in the foreign exchange rates are expected.

CBRT did not change the interest rates at the PPK meeting last month and the one-week repo rates remained around 7.5 percent while the highest band for the interest rate corridor was 10.75 percent, with the lowest band at 7.25 percent.

On the other hand, according to an announcement by the CBRT on April 14, there may be a moderate discount in the interest rates applied for foreign exchange reserve markets and a moderate increase in partial interest rates paid for required reserve rations in Turkish lira. The announcement further noted that additional measures can be taken at the meeting to support the stability of the financial markets if necessary.