The Central Bank will announce its interest rate decision on Thursday. It is expected that the Bank will lower the interest rate for the third time. The declines are also reflected in credit and deposit interest rates.

The Central Bank reduced its policy rate from 50% to 45% in the last two meetings.

The Bank will announce its new interest rate decision on Thursday. Economists expect the interest rate to decrease to 42.5%. Economists mentioned that the inflation rate announced yesterday will ease the hands of the Central Bank and emphasized that attention will be paid to possible changes in the Monetary Policy text. INTEREST RATES ARE DECREASING

The Central Bank’s steps are reflected in credit and deposit rates. According to the bank’s data, the average interest rate for consumer loans was 69.23% on December 20 but decreased to 63.11% in the week of February 21. The annual compound deposit interest rate was 59.44% on December 20, which dropped to 51.75% on February 21. WILL THE DECLINE IN INTEREST RATES CONTINUE?

Economists stated that there is no quantitative easing in the credit market, but a decrease in prices is expected. It is anticipated that the decline in credit interest rates will continue alongside the decrease in policy interest rates. However, it is predicted that the tightness in credit will persist. INFLATION BELOW 40%

Turkey’s inflation in February came below expectations at 2.27% monthly. It was expected that the monthly inflation rate would be around 3%. The annual inflation rate also decreased to 39.05%. This means that inflation has dropped below 40% for the first time in 20 months.