Survey forecasts interest rates drop in Turkey

ISTANBUL-Anadolu Agency

Economists forecast that Turkey's Central Bank will cut interest rates this week, according to an Anadolu Agency survey on Feb. 17.

The second Monetary Policy Committee (MPC) meeting of 2020 will be held on Feb. 19 to announce the bank's decision on interest rates.

While seven out of 21 economists surveyed by Anadolu Agency expected no change in interest rates, the remaining 14 economists forecast a drop in the rate, ranging between 25 and 75 basis points.

Three economists expected 75 basis points, nine expected 50 basis points, and two expected 25 basis points, the survey found.

Last month, the bank reduced its one-week repo rate – also known as the bank's policy rate – to 11.25 percent.

In 2019, the bank gradually cut the rate by 1,200 basis points from 24 percent to 12 percent.

After holding eight MPC meetings last year, in 2020 the bank decided to increase the number of meetings to 12.