Turkey: Survey forecasts no change in interest rates

By Gokhan Ergocun

ISTANBUL (AA) - Turkey's Central Bank is expected to keep interest rates unchanged next week, according to an Anadolu Agency survey on Friday.

The eighth monetary policy committee (MPC) meeting of this year will be held on Thursday (Aug. 20) to announce the bank's decision on interest rates.

A majority of 22 economists surveyed by Anadolu Agency forecast no change in interest rates.

While 18 economists forecast that the bank will not change rates, four expected increases, ranging from 25 to 175 basis points.

Meanwhile, economists' year-end interest rate expectation is at 8.25% -- ranging between 6.75% and 12%.

In July, the bank kept its one-week repo rate at 8.25%. This year it cut the rate from 12% to 8.25% gradually during six MPC meetings.

Last year, in eight MPC meetings, the bank cut the rate by a total of 1,200 basis points, from 24%.

After eight meetings held last year, the bank increased the number of MPC meetings to 12 for this year.

* Writing and contributions by Gokhan Ergocun