Insightful Word
  • Investing
  • Stock
  • Economy
  • Politics
  • Investing
  • Stock
  • Economy
  • Politics
No Result
View All Result
Insightful Word
No Result
View All Result
Home Economy

Turkish cenbank rate cut expectations rise after 30% minimum wage hike

admin by admin
December 25, 2024
in Economy
0
Turkish cenbank rate cut expectations rise after 30% minimum wage hike
0
SHARES
4
VIEWS
Share on FacebookShare on Twitter

By Nevzat Devranoglu

ANKARA (Reuters) – Expectations of a Turkish central bank rate cut strengthened on Wednesday after a less-than-requested minimum wage hike, economists said, as it showed the government’s determination to reach disinflation targets.

The 30% rise will test the government’s efforts to fight years of chronic high inflation as it could pressure prices.

Turkey’s net monthly minimum wage will be 22,104 Turkish lira ($627) in 2025. The government said the level was set to maintain fiscal discipline and continue the fight against inflation. The workers union had requested an increase around 70%.

Economists said the wage rise, impacting some 9 million workers, made it certain the central bank will start policy easing later this week.

“Expectations for a rate cut have risen, and I’ve revised my own forecast from a 150 basis point cut to 200 basis points. However, a 250 basis point cut wouldn’t be a surprise,” said Filiz Eryılmaz, chief economist at ALB Yatırım.

According to a Reuters poll published last week, the central bank is expected to start an easing cycle after eight months of steady policy. Economists expected the first rate cut to be between 150-250 basis points from the current policy rate of 50%.

“This (minimum wage) increase, which is at the lower end of expectations, is expected to have an additional CPI impact of less than 1 point, and we believe it has eased the central bank’s hand in initiating interest rate cuts,” said Haluk Burumcekci, founding partner at Burumcekci Consulting.

According to previous central bank research, a one percentage point increase in the minimum wage contributes 0.06 to 0.2 points to inflation. It is estimated that the new hike, which could impact inflation between 1.8-6 points, is mostly taken into account in its year-end inflation forecast of 21%.

Turkish inflation declined to 47.09% in November from an annual high of 75% in May, mainly due to tight monetary and fiscal policies. However, the improvement in the print was slower than previously forecast according to the central bank.

The bank will announce its policy rate decision at 1100 GMT on Thursday.

($1 = 35.2599 liras)

This post appeared first on investing.com

Previous Post

Russia is using bitcoin in foreign trade, finance minister says

Next Post

Turkey raises monthly minimum wage by 30% for 2025

admin

admin

Next Post
Turkey raises monthly minimum wage by 30% for 2025

Turkey raises monthly minimum wage by 30% for 2025

Trending News

With Bitcoin breaching the $100,000 mark, what else could be in store for crypto under Trump?

With Bitcoin breaching the $100,000 mark, what else could be in store for crypto under Trump?

December 7, 2024
Nifty 50 index has crashed, but technicals point to a surge soon

Nifty 50 index has crashed, but technicals point to a surge soon

March 18, 2025
Risk alert: ‘mild recession’ could crash the S&P 500 to 3,700 level

Risk alert: ‘mild recession’ could crash the S&P 500 to 3,700 level

April 26, 2025
Subscribe to Insightful Word


    Recent News

    ARB eyes recovery as Arbitrum taps agentic DeFi revolution with $1M grant

    ARB eyes recovery as Arbitrum taps agentic DeFi revolution with $1M grant

    June 5, 2025
    Ripple releases $2.18B in XRP, price dips 2%

    Ripple releases $2.18B in XRP, price dips 2%

    June 5, 2025
    Nintendo Switch 2 launch sees shortages as 2.2M vie for units in Japan

    Nintendo Switch 2 launch sees shortages as 2.2M vie for units in Japan

    June 5, 2025
    Why Bank of America sees 13% upside on Roblox (RBLX)

    Why Bank of America sees 13% upside on Roblox (RBLX)

    June 5, 2025

    Recent News

    ARB eyes recovery as Arbitrum taps agentic DeFi revolution with $1M grant

    ARB eyes recovery as Arbitrum taps agentic DeFi revolution with $1M grant

    June 5, 2025
    Ripple releases $2.18B in XRP, price dips 2%

    Ripple releases $2.18B in XRP, price dips 2%

    June 5, 2025

    Latest News

    • ARB eyes recovery as Arbitrum taps agentic DeFi revolution with $1M grant
    • Ripple releases $2.18B in XRP, price dips 2%
    • Nintendo Switch 2 launch sees shortages as 2.2M vie for units in Japan

    About Insightful Word

    • Contacts
    • Cookie Notice
    • Privacy Policy
    • Terms of Service
    • Trading tools
    • Contacts
    • Cookie Notice
    • Privacy Policy
    • Terms of Service
    • Trading tools

    Copyright © 2025 Insightfulword.com. All Rights Reserved.

    No Result
    View All Result
    • Investing
    • Stock
    • Economy
    • Politics

    Copyright © 2025 Insightfulword.com. All Rights Reserved.