Barclays now sees two Fed cuts this year, says jumbo Fed cuts ’very unlikely’
Investing.com -- The Central Bank of the Republic of Turkey (CBRT) cut its one-week repo rate by 300 basis points to 43% on Thursday, exceeding market expectations for a smaller reduction.
The decision marks the first interest rate cut since the Turkish lira sell-off in March, which had previously forced the central bank to halt its easing cycle. Prior to the March currency crisis, the CBRT had been implementing rate cuts in 250 basis point increments.
Most analysts had anticipated the central bank would restart its easing cycle at the same 250 basis point pace rather than the larger 300 basis point cut delivered.
Despite the larger-than-expected rate reduction, the CBRT’s accompanying communications maintained a hawkish tone, suggesting a more cautious approach to monetary easing going forward.
The pace of interest rate cuts is expected to slow in coming months, with forecasts indicating the one-week repo rate will end 2025 at approximately 37.00%, revised from previous projections of 38.00%.
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