Deutsche Bank sees Turkey cutting tariffs 14% by year-end

Deutsche Bank (DE: DBKGn) said it now expects Turkey’s central bank (CBT) to decrease interest rates by 100 basis points at each of its November and December sessions, which would be faster than previously forecast.

“On the back of the lower-than-expected core inflation in October, the CBT’s recent emphasis on current account adjustments, as well as the increase in required reserve ratios for FX and gold deposits announced this week, we expect the CBT to lower the policy rate faster than initially anticipated,” said Fatih Akcelik in a note to clients late on Wednesday.

“Our year end policy rate (and terminal rate) is now14.0% (previously 15%).” In addition, Deutsche Bank predicted that headline inflation would remain above 20% in the first half of next year, peaking at 16.0 percent in 2022.

Story by : Norvisi Mawunyegah