Goldman Sachs Shared Its Inflation Forecast For Turkey

Goldman Sachs shared its inflation forecast for Turkey. The institution raised its inflation expectation to 16 percent.

Goldman Sachs raised its year-end inflation forecast for Turkey from 15.5 percent to 16 percent, following the higher-than-expected June inflation data. Citigroup, on the other hand, stated that they do not expect any further rate cuts this year after the inflation data. In a note shared with customers, Goldman Sachs said, "After the hike in electricity and natural gas prices and the upside surprise today, we are raising our year-end forecast to 16 percent." Goldman Sachs also underlined that the Central Bank of the Republic of Turkey (CBRT) will have the opportunity to cut interest rates a bit in the fourth quarter. Citi, after the inflation data, said, "Conditions for monetary easing are getting more and more difficult. We do not expect a reasonable rate cut in November or December." Barclays also raised its year-end inflation forecast for Turkey from 13.8 percent to 14.8 percent, while forecasting that the CBRT will cut by 250 basis points in the fourth quarter instead of 350 basis point. Consumer prices increased by 17.53 percent in June compared to the same period of the previous year, reaching the highest level since May 2019. According to the data released by the Turkish Statistical Institute, the monthly increase in consumer prices was recorded as 1.94 percent.