Expectations of interest rate cuts from the markets

Ziraat Bank General Manager Alpaslan Çakar made notable statements regarding the economy in an interview with CNBC-e as part of the Agriculture Ecosystem Meeting, held for the fourth time this year. Sharing his expectations for the Central Bank's Monetary Policy Committee (MPC) meeting on July 24, Çakar gave a strong signal in favor of an interest rate cut.

"With the contribution of the summer months, there is a visible improvement in inflation expectations. In this context, I expect a meaningful interest rate cut from the Central Bank on July 24," said Çakar, adding that he anticipates inflation to decline to the 20 percent level by the end of the year.

EMPHASIS ON INFLATION AND INTEREST RATE BALANCE

Arguing that the decline in interest rates will follow a course parallel to the improvement in the inflation outlook, Çakar noted that this situation could also create positive effects for credit markets and investments. He pointed out that with the interest rate cut, costs will decrease and the real sector will be able to breathe.

"WE ARE MORE RESILIENT AGAINST GLOBAL SHOCKS"

Evaluating global developments, Alpaslan Çakar pointed to the potential effects of geopolitical tensions, particularly in the Middle East, on energy and commodity prices. Despite the developments on the Israel-Iran line, he stated that the Turkish economy has become more protected against such external shocks.

"The order established after the Second World War is now changing. As a new global economic system is being formed, Turkey is taking the right position in this transformation," he stated.

Stating that the recovery in economic indicators has become permanent, Çakar argued that Turkey has attained a more sustainable and stronger economic structure in the new era.