Türkiye seeks to achieve a growth rate of about 4% this year (Getty)

President of the Turkish Banking Association, Alpaslan Çakir, expected that the Turkish Central Bank would raise interest rates for the last time this week and begin a monetary easing cycle in the fourth quarter of this year.

“The rise in interest rates is coming to an end all over the world,” Cakir told reporters yesterday, Tuesday, in comments that were prohibited from being published before Wednesday. “I believe that Turkey will follow the steps to lower interest rates taken by the major central banks, and I expect the cycle of lowering interest rates to begin in the quarter.” the last one".

The Turkish Central Bank is expected to raise interest rates by another 250 basis points to 45% after the monetary policy meeting tomorrow, Thursday, which will mark the end of the sharp monetary tightening cycle, according to a Reuters poll.

For its part, the Central Bank said that it would complete the tightening cycle soon after it had already raised the interest rate by 3,400 basis points since last June, when Hafiza Ghaya


appointed its conservative pillars, and changed the unconventional approach that the bank had followed for years.

Çakir - who is also the CEO of the large government Ziraat Bank - said that he expects inflation to continue rising until next May, before falling to about 40-45% by the end of the year, which is higher than the central bank’s expectations at the end of the year of About 36%.

Based on Turkey's new economic program, the Turkish economy is expected to achieve a growth rate of 4% this year, while the program expects the inflation rate to decline to 33% by the end of the year.

Experts expect - in an interview with Al Jazeera Net previously - that in light of the continued government pressure on the economic administration to achieve growth rates as expected in the medium-term program, this will lead to great difficulty in reducing inflation rates as required, as it appears as if there is an attempt to combine two opposite things. .

Source: Al Jazeera + Reuters