Inflation targeting

People line up outside of Macy's flagship store before opening on Black Friday, in New York City.

A December interest rate cut is still up for debate, a senior U.S. Federal Reserve official has said, suggesting that another rate reduction is not a foregone conclusion.

The decline in inflation is expected to continue in the coming period, Vice President Cevdet Yılmaz has said, noting that annual inflation has fallen by 27 points in the past four months.

"In mid-2025 or in the fall, we won't be talking about inflation anymore," Yılmaz said in a speech at a gathering with businesspeople in the province of Denizli.

Members of the Turkish Central Bank's Monetary Policy Committee (MPC) are set to meet on Nov. 21 to decide about the key interest rate.

Most economists expect the bank to keep its policy rate, the one-week repo auction rate, unchanged for the eighth straight month at 50 percent.

The European Central Bank is expected to lower interest rates again this week as anxiety about inflation in the eurozone fades and concerns over sluggish growth mount.

Inflation fell to 1.8 percent across the 20 members of the euro area in September, the first time it has been below the ECB's target of two percent since 2021.

Inflation expectations for the end of 2024 increased from 43.1 percent in August to 44.1 percent in September, a Central Bank survey has shown.

The 12-month ahead inflation expectations, however, fell from 27.5 percent to 27.4 percent, according to the monthly survey of market participants.

The 24-month ahead inflation forecasts eased from 18.38 percent to 18.08 percent.

The Eurozone economy is showing weaker performance than anticipated, prompting the European Central Bank (ECB) to assess its impact on consumer prices at its upcoming meeting, according to ECB Executive Board member Frank Elderson.

Eyes are now on the Central Bank after inflation in September came in above expectations, while Governor Fatih Karahan has reiterated that the bank will maintain its tight stance.

Last month, consumer prices rose 2.97 percent, accelerating from 2.47 percent in August. The September print was also above the market forecast of 2.2 percent.

Data to be unveiled by the Turkish Statistical Institute (TÜİK) later this week is expected to show a further decline in the annual inflation rate in September.

Türkiye's annual inflation is forecast to drop to 48.1 percent in September from 51.97 percent in August, according to a state-run Anadolu Agency poll of economists.

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.

The European Central Bank (ECB) has cut interest rates again as inflation in the Eurozone slows and economic growth falters. However, no clear guidance was given on future actions, even though investors expect continued easing in the coming months. The deposit rate was lowered by 25 basis points to 3.5%, a move anticipated after a similar cut in June.