Baku. 19 December. REPORT.AZ/ After US Federal Reserve System (Fed) increased refinancing rate of the Central Bank of Turkey (CBT) tomorrow, a decision will be taken at a meeting held on December 20, the focus of the financial markets. Report informs referring to Hurriyet newspaper, financial markets forecast to increase discount rate of TCMB by 0,25%, while the upper limit of the interest rate by 0.5%.
However, analysts believe that the central bank will keep interest rates unchanged in order to see reaction of financial markets. Notably, percentage of the discount rate in Turkey is based on a 1-week repo interest.
Notably, the last meeting of the Central Bank will be held in 2016.
Notably, TCMB will have last meeting in 2016. On November 24, TCMB increased upper limit of the interest rate corridor by 0.25 percentage points up to 8.5% and the discount rate or the 7-day repo rates by 0.5 % up to 8%.
Analytical Group of Report believes, if during tomorrow's session TCMB will increase interest rates the dollar rate will decline to 3.40 TRY / USD. Otherwise, the US dollar exchange rate can break the record level of 3.60 3.40 TRY / USD. So, there is no information about the date of the next meeting.
Report informs, change which provides for the implementation of Central Bank's monetary policy meetings 8 times a year since 2017 has been submitted to the parliament on December 16.
Prior to this, the Central Bank held monetary policy meetings once a month.