Deutsche Bank Announced Its CBRT Interest Rate Forecast

Deutsche Bank announced its CBRT interest rate forecast. Deutsche expects a 100 basis point cut from the next meeting.

As the important November meeting of the Central Bank of the Republic of Turkey (CBRT) approaches, foreign institutions have started to explain their expectations. According to the research report published by Deutsche Bank economists, including Christian Wietoska and Fatih Akçelik, the bank's expectations for interest rate cuts have also changed due to the lower-than-expected core inflation in October and the Central Bank of the Republic of Turkey's recent emphasis on current account deficit. Deutsche Bank economists, who stated that they expect a 100 basis point cut at the CBRT meeting to be held next week, stated that they expect another 100 basis point cut on December 16, and that they lowered their year-end interest rate expectations from 15 percent to 14 percent. Economists, who stated that the inflation was below their expectations of 20.3 percent in October, stated that the core inflation also surprised to the downside, but they thought that this was most likely temporary. Expecting headline inflation to be 19.5 percent at the end of the year, Deutsche Bank emphasized that they think core inflation will reach 17 percent due to the global commodity rally and the depreciation of the Turkish lira. Stating that the lower-than-expected inflation will increase interest rate cuts for the remainder of the year, economists stated that they think that the Central Bank is more tolerant of the depreciation of the Turkish lira.