UBS Shared Its Expectations From The CBRT

UBS shared its expectations from the CBRT. UBS expects only a 50 basis point reduction from the Central Bank of the Republic of Turkey until the end of the year.

UBS stated that it expects a reduction of only 50 basis points from the Central Bank of the Republic of Turkey (CBRT) until the end of the year, while expressing that a faster monetary easing is among the risks. UBS stated that they expect the Central Bank of the Republic of Turkey (CBRT) to cut the interest rates to 17.50 percent with another 50 basis point cut by the end of 2021, but that the CBRT will most likely wait for a decrease in headline and core inflation to reduce interest rates once again. Stating that they will closely follow the dollarization trend, the bank emphasized that last week, households and companies sold 1.7 billion dollars and switched to Turkish lira deposits.

Inflation Continued to Rise

In September, annual inflation was recorded as 19.58 percent. According to the data announced by the Turkish Statistical Institute, an increase of 1.25% was recorded in the consumer price index in September compared to the previous month.