Banking
Deutsche Bank sees Turkey cutting rates to 14% by year-end
Published by maria gbaf
Posted on November 12, 2021
1 min readLast updated: January 28, 2026
Global Banking & Finance Review®
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Published by maria gbaf
Posted on November 12, 2021
1 min readLast updated: January 28, 2026
Deutsche Bank anticipates Turkey's central bank will cut interest rates to 14% by the end of 2023, influenced by lower core inflation and policy changes.
LONDON (Reuters) – Deutsche Bank said it now expected Turkey’s central bank (CBT) to reduce interest rates faster than previously anticipated and cut by 100 basis points at each of its November and December meetings.
“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 now
14.0% (previously 15%).”
Deutsche Bank also said it expected headline inflation to stay above 20% in the first half of next year and end 2022 at 16.0%.
(Reporting by Karin Strohecker; Editing by Rachel Armstrong)
The article discusses Deutsche Bank's forecast for Turkey's central bank to cut interest rates to 14% by year-end.
Deutsche Bank cites lower-than-expected core inflation and recent policy changes as reasons for the anticipated rate cuts.
Deutsche Bank expects headline inflation in Turkey to remain above 20% in the first half of 2023.
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