The Central Bank is set to announce its second interest rate decision of the year. Following the lower-than-expected inflation figures, it is expected that the CBRT will continue its interest rate reduction cycle. Here are the key points to know before the interest rate decision… Eyes are now on the interest rate decision after the positive signals from inflation. The Central Bank will announce its second interest rate decision of the year today at 14:00. Economists noted that the CBRT’s hand has been eased after the inflation data came in below expectations. It is expected that the CBRT will lower the policy rate by 250 basis points to 42.5%. Foreign institutions such as Morgan Stanley, JPMorgan, and Deutsche Bank have also predicted a 250-basis-point rate cut for the March meeting. Year-end policy rate expectations have settled at around 30%. Economists emphasized that the messages the Central Bank will send to the markets will be closely monitored. It will also be watched whether there will be any changes in the monetary policy text. The Central Bank began its interest rate reduction cycle in December. The CBRT had reduced the interest rate by 500 basis points at the following two meetings, lowering it from 50% to 45%. Turkey’s inflation came in at 2.27% on a monthly basis in February, below expectations. Monthly inflation was expected to be around 3%. Annual inflation, on the other hand, dropped to 39.05%. Consequently, inflation fell below the 40% level for the first time in 20 months.