Deutsche Shared the CBRT's Rate Increase Forecast

Deutsche shared the CBRT's rate increase forecast. The bank expects the CBRT to increase interest rates by 100 basis points in the first quarter. Deutsche Bank Middle East and Eastern Europe Research Manager Christian Wietoska, who was a guest at Bloomberg HT, announced the CBRT's interest rate decision and forecasts on the exchange rate. Answering the questions of Bloomberg HT, Wietoska stated that the returns are in emerging markets and the US dollar may struggle in the coming months. Wietoska stated that they maintained their constructive views for TL even though the first quarter was difficult, said, “TL showed that its very resistant since the beginning of the year.” Noting that the USD/TL exchange rate will continue to remain below 7.50, Wietoska continued his words as follows: “The Central Bank's rate hike in January is not as important as the rate hike decision in 2020, because trust has been gained by foreign investors across the markets. Therefore, we expect a 100 basis point hike in the 1st quarter.” Addressing the issue of inflation, Wietoska, stated that the most obvious problem of the Turkey is the inflation dynamics and that they expect inflation to rise above 15 percent in March.     Source: Bloomberg HT