Economists at Standard Chartered now expect the Central Bank of the Republic of Türkiye (CBRT) to raise the weekly repo rate by 550 bps on 22 June.

CBRT likely to pivot with a 550 bps rate hike

We now expect the CBRT to raise the one-week repo rate by 550 bps to 14.0% on 22 June; we previously expected no change.

We now expect the CBRT to move gradually from a highly accommodative monetary policy stance towards a neutral or hawkish stance to address renewed TRY weakness, a widening current account deficit, and persistently high inflation (despite slowing economic activity).