Deutsche Bank expects a 200 point interest rate cut from the CBRT till end of 2021

In a statement sent to clients, Deutsche Bank shared following information: “Based on October’s core inflation, which is lower than expectations, the CBRT’s emphasis on correcting the current account balance and the increase in gold and foreign exchange mandatory reserve ratios announced this week we expect the CBRT to reduce the policy interest rate faster than we first anticipated.”

Deutsche Bank, which estimates that the CBRT will reduce its policy rate by additional 100 basis points at the Monetary Policy Board meetings on November 18 and on December 16 (200 points in total) expects that the policy rate will be 14 percent by the end of the year. The bank had previously forecast that interest would be 15 percent at end of the 2021.

In the information note, it was stated that headline inflation was projected to remain above 20 percent in the first half of 2022, while inflation was expected to be 16.0 percent at the end of 2022.

Source: tr.investing.com/news/economy/deutsche-bank-tcmbden-yl-sonuna-kadar-200-baz-puan-faiz-indirimi-bekliyor-2222391