Morgan Stanley Announced Its USD/TL Forecast Following Interest Rate Decision

Morgan Stanley announced its USD/TL forecast following the interest rate decision. The institution said that the dollar/TL exchange rate can be seen at 6.80 levels.

Morgan Stanley announced that the Central Bank of the Republic of Turkey (CBRT) expected to see a level of 6.80 in dollar/TL rate with the expectation of a new rate hike, after keeping the interest rate constant in line with the expectations in February meeting. While the Central Bank of the Republic of Turkey (CBRT) kept the interest rate unchanged at 17 percent in February, Morgan Stanley predicted an increase of 100 basis points in the near term. Morgan Stanley analysts, including Georgi Deyanov and Jaiparan S Khurana, shared the view that the dollar/TL exchange rate could drop to 6.80 in anticipation of a new rate hike. Analysts, predicting that the inflation rate will rise until April, think that the CBRT will soon raise the interest rate by 100 basis points. On the other hand, Morgan Stanley analysts reiterated that their positive opinion about Turkish stocks has not changed. The following expressions were used for the shares in the report in question: “Although they have surpassed their peers since the end of October, the multipliers of Turkish stocks are still largely discounted to the 5-year and long-term averages. BIST 100 index has a 17 percent upward potential in dollar terms.” At its February meeting, the CBRT emphasized additional tightening by keeping the policy rate of 17 percent. The following statements were made in the text of the CBRT: “Within the scope of strong indicators that point to a permanent decline in inflation and price stability, the underlying trend of inflation and indicators of pricing behavior, diffusion indices, demand and cost factors, and inflation expectations are closely monitored within the forecast horizon. Additional monetary tightening will be made if necessary.”