US giant investment banks Citi, Goldman Sachs and JP Morgan began to report that the CBRT’s interest rate cuts were a dream, following developments such as the January inflation that exceeded expectations and the subsequent war that started in Türkiye’s neighbor Iran. JP Morgan withdrew its interest rate cut expectation.
JP Morgan withdrew the report that the CBRT would cut 100 basis points at the next MPC meeting. The year-end interest rate expectation increased from 31 percent to 32 percent.
Citi, on the other hand, expects the CBRT to keep the policy rate constant in April. He reported that the CBRT may consider additional tightening measures if inflation pressures continue.
Goldman Sachs reported that the CBRT may increase the policy rate in April. The bank reported that the CBRT may increase interest rates by 300 basis points in the next meeting.
The Central Bank left the policy rate constant at 37 percent at yesterday’s meeting, citing geopolitical risks.
