Many foreign economists expected Turkey’s central bank to continue its monetary easing cycle by reducing the policy rate.
Analyst Phoenix Kalen of Societe Generale predicted the Central Bank of the Republic of Turkey (CBRT) to cut 50 bp the benchmark one-week repo rate to 7.75% to support a rapid credit-led economic recovery.
He estimated the stabilizing Turkish lira, the declining currency volatility, and the upward trend in risk sentiment to raise the confidence of the bank.
Strategist Piotr Matys of Rabobank forecast the bank to cut the policy rate by 25 bps to 8.00%.
Meanwhile, a survey held by Anadolu Agency projected the bank to cut by 25 bp on average, ranging between 25 bp and 50 bp.
In May, the CBRT cut the one-week repo rate by 50 bp to 8.25%. The Monetary Policy Committee (MPC) is planned to meet for the sixth time this year.
