Deutsche Bank issues interest rate forecast for Turkey

Deutsche Bank Global Macro Vice President Ozan Korman Tarman shared his expectations regarding interest rate policy in Turkey during an appearance on the CNBC-e channel. Evaluating developments in the global economy, Tarman emphasized that topics such as geopolitical risks, advancements in artificial intelligence, volatility in commodity markets, and the debt market are at the forefront.

Tarman stated that emerging markets continue to be favorites in global markets, while also drawing attention to potential risks that could disrupt the optimistic outlook. He pointed out that concerns over a recession in the US or rising bond yields could shift balances in the markets. Furthermore, he noted that non-farm payroll data in the US is expected to come in low.

Reminding that Deutsche Bank's expectations include the US Federal Reserve (Fed) projecting only one interest rate cut this year, Tarman expressed his own forecast that the Fed will implement three rate cuts starting from June.

SIGNAL FOR INTEREST RATE HIKE IN JAPAN

In his assessment of the Japanese economy, Ozan Korman Tarman stated that the Bank of Japan will accelerate its normalization steps and may soon pursue a policy that allows for an interest rate hike.

100 BASIS POINT CUT FORECAST FROM TCMB

Sharing his expectations regarding the Central Bank of the Republic of Turkey, Tarman announced that they expect a 100 basis point interest rate cut from the TCMB in March. Tarman stated, "Our March forecast for Turkey is a 100 basis point cut. How prices will trend during Ramadan and the February inflation figures are quite important."

Additionally, in his assessments, Tarman drew attention to the impact of the global economic outlook and expectations on financial markets.