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Deutsche Bank: Central Bank to continue interest rate hikes

Deutsche Bank has maintained its expectation that the Central Bank (CBRT) will raise interest rates by 250 basis points. The bank also does not expect monetary easing in Turkey until the final quarter due to the disinflation process.

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Deutsche Bank: Central Bank to continue interest rate hikes

Deutsche Bank has announced that it anticipates a tight monetary policy in Turkey until the 4th quarter.

According to a report by Bloomberg HT, the bank expects the Central Bank to raise its policy rate by 250 basis points to 45 percent this month.

According to analysts, the fact that the minimum wage increase is above the Central Bank's year-end inflation forecast (36%) serves as a warning that the fight against inflation will be a difficult process. Deutsche Bank projects that CPI in Turkey will reach 42% by the end of the year.

Economist Yiğit Onay and Strategist Christian Wietoska stated that the increase in global risk appetite towards the end of the year supports foreign investors' interest in local assets. Furthermore, regarding the local elections, the analysts pointed to the March local elections, which could create uncertainty regarding potential easing on the fiscal front, particularly in the first quarter.


News Source: 12punto

Deutsche Bank interest rates CPI Christian Wietoska