Turkey's Central Bank To Cut Policy Rates: Aa Survey

Economists surveyed by Anadolu Agency have forecasted that Turkey's Central Bank will cut interest rates further at the next Monetary Policy Committee meeting due on July 17.



All the 18 economists who participated in the survey expected a cut in policy rates although their estimations varied in figures.



12 of the economists predicted the policy rate be reduced by 50 base points, while four of them said it would decrease by 75 base points. The other two predicted a drop by 25 base points.



On April 7, Central Bank governor Erdem Basci said the Monetary Police Committee, which decides on interest rates, would make more "measured" interest rate cuts.



The committee reduced the rates by 50 and 75 base points at the last two committee meetings in May and June respectively.



Turkey's Prime Minister Recep Tayyip Erdogan and other government officials have been criticizing the Central Bank for maintaining high interest rates, terming it as a possible limiting factor for economic growth.



On 29 January this year, the Central Bank of Turkey introduced drastic interest rate hikes in response to the rise of the U.S. dollar against the lira in mid-January.



www.aa.com.tr/en - İstanbul