The countdown for the interest rate decision has begun! All eyes are on the Central Bank...

The Central Bank of the Republic of Turkey (CBRT), which is closely followed by financial markets, will hold its seventh Monetary Policy Committee (MPC) meeting of the year on Thursday, October 22. Following the meeting chaired by CBRT President Fatih Karahan, the decision regarding the policy rate will be shared with the public at 14:00 on the same day.

The Central Bank left the policy rate, known as the one-week repo auction interest rate, at 37 percent at the previous MPC meeting held in September. In addition to the decision to be taken at the October meeting, the signals the bank will give regarding the monetary policy it will follow in the coming period are also on the agenda of the markets.

INFLATION AND ENERGY PRICES ARE CLOSELY MONITORED

In the previous decision text of the Central Bank, it was emphasized that geopolitical developments could put upward pressure on inflation through energy prices.

CBRT had given the message that tight monetary policy would continue until price stability was achieved. The bank also stated that monetary policy could be tightened further in case of a significant and permanent deterioration in the inflation outlook.