BofA, TCMB’nin Faiz Tahminini Duyurdu

Bank of America (BofA) economists argue that the likelihood of the Central Bank of the Republic of Turkey (CBRT) making a rate cut in June is low, maintaining their expectation for the first cut to occur in July.

BofA economists have revealed their latest forecasts regarding monetary policy following an unexpected drop in food prices and a slowdown in the services sector.

Highlighting the weakness in demand for essential goods, the economists stated that the possibility of the Central Bank making changes to the policy rate in June is minimal.

They noted that the first cut could be 200 basis points in July, while also emphasizing that the impact of the exchange rate on essential goods prices should decrease.

Domestic market participants predict that at the June meeting of the Monetary Policy Committee, the CBRT may lower the upper band of the interest rate corridor. This move, although not a direct rate cut, is viewed as a technical adjustment to provide flexibility in monetary policy.

Interest Rate Forecast Post-Inflation from 4 Domestic Institutions
Following the announcement of May inflation figures by TurkStat, which fell below expectations, domestic institutions have shared their views on the CBRT’s interest rate trajectory.