Economists Analyze Timing of Interest Rate Cut Decision Live
The Central Bank Maintains Policy Rate for the 6th Time: When Will Citizens Feel the Decline in Inflation?
The Central Bank has once again decided not to change the policy rate, keeping it at 50 percent for the 6th consecutive time. Many citizens are wondering when they will start to feel the effects of a decline in inflation. Two experts recently discussed this issue on a live broadcast on CNN Turk.
Certified Public Accountant and Economist Muhammet Bayram explained that the Central Bank is waiting to see a clear decrease in monthly inflation before making any changes to the policy rate. He noted that food prices have turned negative, and the Central Bank is acting cautiously to ensure that inflation continues to decrease. The 12-month inflation rate recently dropped from 28 percent to 27 percent, indicating some improvement in the situation.
Bayram also pointed out that the lack of an increase in the minimum wage and adjustments in pension payments have contributed to the perception that inflation will decrease. He predicts that citizens will start to see improvements in the main trend by November.
Looking ahead, the Central Bank is expected to maintain the interest rate next month, with a possible 25 basis point cut coming towards the end of the year. Professor Dr. Abdulkadir Develi emphasized that the tight monetary policy will continue until inflation is brought under control, despite speculation about easing measures following the Federal Reserve’s interest rate cut decision.
Develi added that there has been a cooling in demand and a horizontal trend in credit card spending, indicating progress in the fight against inflation. The implemented monetary policy is also making the Turkish Lira stronger, reducing exchange rate pressure.
Overall, while there are still hawkish messages from the Central Bank, there is hope that interest rate cuts may be on the horizon by December or January. The fight against inflation is ongoing, but the country is entering a more favorable period in terms of economic stability and growth. Citizens may soon start to feel the positive effects of these measures in their daily lives.
