British bank shares inflation forecast for Turkey
HSBC, a major UK-based bank, has stated that they do not expect significant policy changes following the local elections, while revising their growth and inflation forecasts upward for 2024.
In its Turkey report released today, HSBC stated that they did not anticipate major policy changes following the local elections on March 31st. Predicting that a soft landing would continue to be a priority in the economy, HSBC said, “This means imbalances will slowly correct. Further tightening will help cool the economy more rapidly, but we expect a more gradual approach to continue.”
Revising its growth forecasts for 2024 and 2025 for the Turkish economy from 2.5% and 3.5% to 3.1% and 3.6% respectively, HSBC also raised its year-end inflation forecast for 2024 from 47.9% to 49.4%. It maintained its inflation expectation for the end of 2025 at 29%.
