British bank expects a dollar/lira rate of 16 and a discount of 300 in interest rate
Bank Barclay of Great Britain has predicted that the Central Bank will continue its interest rate cuts, in December and January. According to the reports by Turkish media, the bank expects a rate cut of 200 basis points at the meeting of the Money Market Board on December 16 and 100 basis points at its meeting in January. If this prediction holds, the policy interest will be reduced to 12 percent.
The bank also estimated that inflation in Turkey would rise to around 30 percent within a few months, but stressed that it would not change Central Bank’s plan, although this would make it more difficult to make interest rate cuts.
Barclays, which also announced its exchange rate forecasts, predicted that dollar would be 14.50 TL at the end of 2021, 15.50 TL in the first quarter of 2022 and 16.00 TL in the second quarter to remain at this level by the end of 2022.
The bank expects levels of 16.68 in the last quarter and in the first quarter of 2022 for euros/TL, 17.98 in the second quarter of 2022, 18.88 in the third quarter and 19.04 in the last quarter.
