Goldman Sachs' commentary on CBRT interest rate: 'If urgent measures are not taken...'

The Central Bank of the Republic of Turkey (CBRT) announced yesterday that it kept its interest rate unchanged at 45 percent. US investment bank Goldman Sachs provided evaluations regarding this decision by the CBRT.

CBRT'S RESERVES COULD TURN POSITIVE

Evaluating the CBRT's latest interest rate decision, Goldman Sachs predicted that the appreciation of the Turkish Lira will continue in 2024 and that Central Bank reserves could turn positive.

Economists emphasized the importance of the real appreciation of the TL for the CBRT to reach its disinflation target, while maintaining their easing forecasts.

IF URGENT MEASURES ARE NOT ISSUED...

The Goldman Sachs report, written by Clemens Graffe and Başak Edizgil, predicted in its assessment of the CBRT's interest rate decisions that easing could begin after the third quarter.

In the report, the bank's economists predicted that even if the CBRT does not issue urgent measures, it will support monetary policy in the face of possible easing in credit growth and deposit interest rates, and will use sterilization tools if necessary.

Furthermore, it was also stated in the Goldman Sachs report that the CBRT is expected to take new measures to stop the increase in credit card spending.

News Source: 12punto