The jump in Turkish inflation to a much stronger-than-expected 58.9% y/y last month, coming shortly after bumper Q2 GDP figures, means the central bank (CBRT) is likely to follow up last month’s 750bp interest rate hike with another large move this month. Our working assumption is a 500bp increase in the one-week repo rate (to 25.00%) but, if anything, the odds may be tilting towards a bigger increase.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services