Turkey to drop interest rate, survey predicts

Economists expect that Turkey's Central Bank will drop interest rates this week, an Anadolu Agency survey forecast on Monday.

The fifth meeting of the Monetary Policy Committee (MPC) this year will be held on May 21 to announce the bank's decision on interest rates.

While 15 out of 17 economists surveyed by Anadolu Agency expected 50-basis-point drop on average -- ranging between 25 and 100 basis points, the remaining two economists predicted no change.

One economist expected 100-basis-point drop, another expected 75 basis points, eleven expected 50 basis points and two expected 25 basis points, the survey found.

Last month, the bank reduced its one-week repo rate -- also known as the bank's policy rate -- by 100 basis points to 8.75%.

In 2019, the bank gradually cut the rate by 1,200 basis points to 12% from 24%.

After holding eight MPC meetings last year, the bank decided to increase the number of meetings to 12 in 2020.