Central bank

Most economists expect Türkiye's Central Bank to keep its policy rate steady at 50 percent when members of the Monetary Policy Committee meet later this week on Sept. 19.

In August, the monetary authority held the one-week repo auction rate unchanged at 50 percent for a fifth straight month. The bank last raised rates in March by 500 basis points.

BELGRADE - The National Bank of Serbia (NBS) Executive Board decided on Thursday in favour of further monetary easing, cutting the key policy rate by 25 bp to 5.75 pct, the central bank announced.

"The rates on deposit and lending facilities were also lowered - to 4.5 pct and 7 pct, respectively," the NBS said in a statement.

The European Central Bank is set to cut interest rates again by 25 basis points on Thursday, just days before the US Federal Reserve (Fed) opens its own monetary policy easing cycle.

Erich Arispe Morales, Senior Director at Fitch Ratings, emphasized on Monday the necessity for Türkiye to maintain a tight monetary policy to improve and sustainably decrease inflation expectations, anticipating a gradual easing by the first quarter of 2025.

The European Central Bank is expected to cut interest rates again this week as inflation drifts back down towards its two-percent target, but policymakers will likely stay tight-lipped on future moves.

The ECB began raising rates sharply in mid-2022 to throttle surging consumer prices but has begun to ease the pressure as inflation rates have fallen.

Swiss bank UBS believes gold is gearing up for its next upward move and although it has already reached record highs, investor positioning does not appear to be particularly high.

Turkey's central bank held interest rates steady at 50% for a fifth straight month on Tuesday, as expected, and repeated that it remains vigilant to inflation risks even as it expects disinflation to gain pace.

As widely expected, the Central Bank has kept its main policy rate, the one-week repo auction rate, unchanged at 50 percent for a fifth straight month.

A weak eurozone economy may drag inflation below the European Central Bank's 2% target, ECB policymaker and Bank of Greece Governor Yannis Stournaras said in an interview published on Thursday, reaffirming his expectation for two interest rate cuts this year.

The operating environment for Turkish banks has improved in recent months due to more orthodox macroeconomic policies driving a reduction in macroeconomic and financial stability risks and increased investor confidence, Fitch has said in a report.