Fund Crisis Does Not Require Rapid Easing, According to BofA Analyst
BofA economist Hande Küçük stated that fund crisis measures could limit risks and maintained their expectations for a 100 basis point rate cut in October.
A report prepared by Bank of America economist Hande Küçük emphasized that measures implemented against the fund crisis could partially limit risks and that this situation does not currently necessitate a faster monetary policy easing.
Impact of Measures Evaluated
In the report dated October 5 by Bank of America economist Hande Küçük, attention was drawn to the importance of recent steps aimed at alleviating pressures on liquidity and credit, along with efforts to accelerate repayments.
Sensitivities and Risk Channels
It was stated that the magnitude of the impact will depend on final collections, the persistence of pressures in the stock market, and their reflections on balance sheets and confidence channels.
Expectation of Balance for CBRT Policy
Küçük stated that they expect the Central Bank of the Republic of Turkey to strike a balance between weakening demand and the need to preserve confidence in the lira and the financial system.
Rate Cut Forecast for October
Subject to external conditions and developments in reserves, it was reported that the expectation of a 100 basis point interest rate cut in October is maintained.
December and Potential Scenarios
It was conveyed that predictions that interest rates will be kept on hold in December continue due to the persistence of the global interest rate environment and supply-side inflationary pressures.