07.03.2025 14:50
After the Central Bank lowered interest rates by 250 basis points to 42.5, banking giants Deutsche Bank and Morgan Stanley set a date for interest rate cuts in Turkey. The banks reached a consensus on interest rate expectations in Turkey.
Deutsche Bank emphasized that the Central Bank (TCMB) will slow down the easing in June. In the latest note published by Deutsche Bank, it was predicted that the pace of interest rate easing would be reduced from 250 basis points to 150 basis points in June. The note also forecasted that the pace of easing would continue in this manner for the remainder of the year. It was stated in the note that the bank's year-end inflation expectation is also 28 percent.
INTEREST RATE EXPECTATION 30.5 PERCENT
Similarly, Morgan Stanley expects the TCMB to reduce interest rates by another 250 basis points in April and to decrease the pace of cuts starting from June, bringing it down to 30.5 percent by the end of the year. The bank's note indicated that the Central Bank's Monetary Policy Committee is making efforts to slow down the pace of interest rate cuts if necessary.
Morgan Stanley predicted that the TCMB would slow down the pace of easing after the policy interest rate reaches 40 percent, considering the upward risks to the growth rate of loans and domestic demand, and to support the continued preference for the Turkish Lira in the portfolios of domestic residents.