Turquía Tasa De Interés

The Central Bank of Turkey left its benchmark one-week repo auction rate unchanged at 50% for the eighth consecutive decision in its November 2024 meeting, as expected by markets, to hold the borrowing at their highest level since 2002. The Monetary Policy Committee committee noted that the underlying inflation trend has improved according to the latest data. While core goods inflation is stable and services inflation shows improvement, unprocessed food prices remain high due to temporary supply issues. The optimistic rhetoric regarding Turkey’s disinflation process marked a sharp change in the positioning of the central bank compared to prior meetings, driving TCMB watchers to interpret that rate cuts may be on the horizon for the monetary authority. Still, the MPC noted that upside risks to inflation persist and the central bank will prioritize policy to bring back inflation to its target.