Interest rate forecasts for the Central Bank of the Republic of Turkey from international banks

Serdar HocamAuthor & Editor

Global financial institutions have announced their expectations regarding the current monetary policy of the Central Bank of the Republic of Turkey and possible interest rate steps for the remainder of the year.

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Four leading global financial institutions have shared their current end-of-year and future forecasts regarding the Central Bank of the Republic of Turkey's policy rate, which stands at 37 percent.

Bank of America Expectations

In the report prepared by Bank of America economist Hande Küçük, it was stated that interest rates are projected to be kept constant until April following a possible cut in October.

It was emphasized that a comprehensive easing cycle seems difficult due to inflation expectations remaining high under the impact of high oil prices and geopolitical risks.

Deutsche Bank Analysis

In notes shared by Deutsche Bank analyst Yiğit Onay, it was recalled that the Central Bank kept interest rates unchanged, and the expectation for the 35 percent level by the end of the year was maintained.

Barclays Projections

Barclays Senior Economist Ercan Ergüzel stated in his report that they expect the year-end policy rate to drop to 35 percent through rate cuts at the last two meetings in October and December.

ING Forecasts

In the report published by ING, it was predicted that the policy rate would be brought down to the 35 percent level in the fourth quarter of 2026 and would subsequently decline gradually.