Pending the decision of Piyasalar Merkez to be given on Tuesday



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The Central Bank meets Tuesday to make the first decision on interest rates after the elections and the cabinet of the new economy. The AAA survey of expectations of 50-150 basis points while highlighting the increase in interest rates, JP Morgen 125 base expect percentage points.

Decision News

The Anadolu Agency -AA Finance Central Bank of Turkey (CBT) 24 July Tuesday The economists who participated in the survey on the meeting of the Monetary Policy Committee (PPK) which will be held on the day scheduled an increase in the policy rate of 50 to 150 basis points. The survey on market expectations for the PPK Meeting of AA Finance was concluded with the participation of 18 economists. With the exception of one of the economists participating in the survey, others are expecting an increase in repo interest rates (key rate) with a deadline of one week. An economist estimates that it will increase by 50 basis points, 2 75 basis points, 7 100 basis points, 4 125 basis points and 3 150 basis points. Economists were expecting an increase in the key rate of 100 basis points. At the PPK meeting last month, the policy rate was raised from 16.5% to 17.75%.

Interest rates in the market before the decline in interest rates of the Central Bank exceed 20.0% in the short term. The rate of interest of 2-year government bonds in the bond market is about 20.50%. Prior to the Central Bank meeting last month, interest rates for short-term bonds were above 19.0%.

JP Morgan, "July 24 will be the first real test

JP ​​Morgan expects the Central Bank to raise the interest rate on July 24 at the PPK meeting. According to the bank, investors will see if "political pressure" will have an impact on the interest rate decision.JP Morgan has also joined the banks of the CBRT, which plans to increase the rate hike. Interest in the July 24 meeting of the Monetary Policy Committee After Morgan Stanley, JP Morgan also set a 125 basis point increase in interest rate expectations for the July PPK. " President Erdogan's government should work intensively to rebuild credibility and correct problems in the roots of the economy, "said JP Morgan in the report.Mr Erdogan named his mother-in-law and former minister of finance. Energy, Berat Albayrak, new Minister of the Treasury e During the last 5-10 years, those applying macroeconomic policies have left the firm. Given the erosion of investor appetite and the fragility of the Turkish economy, the team of the new economy does not have a lot of time. Investors, before changing their views of Turkey's acute and chronic problems to cope with a wide range of programs need to see "the statement. Raporda, "The real test on this image will be the July 24 PPK decision.In particular, investors want to see if the political pressure will prevent the CBRT from doing the necessary monetary tightening."