Deutsche Bank Announces Interest Expectations from CBRT

Deutsche Bank announced its interest rate expectations from the CBRT. The bank also shared its comments about TL.

Deutsche Bank Middle East and Eastern Europe Research Manager Christian Wietoska spoke to Bloomberg HT about how the bond yields, which recorded a sharp increase in the USA, affected Turkey and the pressure on the currencies of the developing countries. Commenting on the effect of US bond yields on TL, Wietoska said: "We all see the progress Turkey has made. We think Turkey's 4th quarter growth will be good. We need to see a step taken from the CBRT, a little tightening should come. We expect a 100 basis point increase in interest rates." Stating that reverse dollar substitution started in Turkey, but progressed slowly, Wietoska said, "Foreign investors are closely following the rate increase. If the CBRT does what it says, foreign investors will remain. We expect a 300-400 basis point rate cut in Turkey after the second half." Evaluating the increase in US bond yields, Wietoska stated that there has been a lot of volatility in US bond yields for a few days and that the increase in interest rates is important for developing country currencies.     Source: Bloomberg HT