The Turkish Central Bank’s Monetary Policy Committee (MPC) will meet on March 12 to decide on interest rates, marking its second rate-setting session of the year. The next meeting is scheduled for April 22.
The gathering comes against the backdrop of market volatility triggered by the conflict in the Middle East. Most economists expect the bank to keep its benchmark one-week repo auction rate unchanged at 37 percent. Prior to the conflict, analysts had anticipated a rate cut of between 50 and 100 basis points.
On Jan. 22, the Central Bank lowered the repo rate from 38 percent to 37 percent, a smaller move than the 150-basis-point reduction widely forecast by economists.
Finance Minister Mehmet Şimşek said this week that economic authorities are closely monitoring developments and taking necessary measures. In a post on March 9, he noted that past experience shows such shocks are not permanent, adding that forward oil market pricing suggests the current movement may prove temporary.
The MPC’s decision will be closely watched as policymakers balance inflationary pressures, global uncertainty and domestic economic priorities.
