They gave a figure for the minimum wage

Amundi's senior fund manager Hakan Aksoy, in an interview with Bloomberg HT, stated that the Central Bank of the Republic of Turkey's decision to lower the policy rate to 38 percent was in line with market expectations. Aksoy noted that although inflation is on a downward trend, this decline is losing momentum.

Aksoy suggested that a 23 percent increase in the minimum wage could increase the pace of interest rate cuts. Stating that the market's expectation for the minimum wage increase is between 25 and 30 percent, Aksoy estimated that if this increase occurs around 25 percent, there could be a total interest rate cut of 8 percent over the next eight meetings.

According to Amundi's more optimistic scenario, Aksoy stated that if the minimum wage increase remains at the 23 percent level, interest rates could fall from 38 percent to 29 percent, adding that this reduction could take place in steps of 125 basis points in the first six months and 100 basis points in the second six months.

Touching upon inflation expectations, Aksoy expressed that, contrary to the Central Bank's 16 percent inflation target for the end of 2026, they believe inflation will not fall below 20 percent. Aksoy stated that it is possible for inflation to materialize around 23 percent and that this situation could have positive effects on the stock market if growth remains above 4 percent.

News Source: 12punto