Morgan Stanley Announced The CBRT Interest Rate Expectation

Morgan Stanley predicted that the Federal Reserve will continue to keep interest rates stable.

Morgan Stanley announced the CBRT interest rate expectation after Deutsche Bank. Morgan Stanley said in the statement made by economists that they expect inflation to follow a course of 19 percent during the summer months, and considering the economic factors such as rising inflation and foreign deficit despite the political pressure to cut interest rates, the Central Bank will keep the interest rates unchanged. In the report prepared by Morgan Stanley economists, "When we think about what other alternatives might be, monetary conditions can be loosened with steps such as reducing required reserves, targeted loans or loosening some macroprudential measures." Economists stated that given the economy at the levels before the coronavirus epidemic and heading towards the pre-2018 trend, an additional monetary support would cause inflation to rise further and investors were worried.

Deutsche Bank Expects Interest Rate Change From CBRT

Deutsche Bank Middle East and Eastern Europe Research Manager Christian Wietoska stated that they expected the CBRT to cut interest rates as of July and that they changed their growth forecast for the end of the year. Speaking to Bloomberg HT, Wietoska stated that they expect a year-end inflation of close to 15 percent and said: “Inflation will continue to increase in the short term, base effects and currency shock will also contribute to this. We expect inflation to rise to 17 percent in April, but we do not think it will be a peak and we expect the increase in inflation to continue " Pointing out that there is still too much uncertainty and external conditions continue to be difficult, Wietoska noted that the high volatility in TL will affect inflation in the short term.