Interest Rate Cut Expectation from Garanti BBVA: Turkish Economy

Garanti BBVA Deputy General Manager Sinem Edige made important evaluations regarding the Turkish economy. In statements made during a CNBC-e broadcast, she shared striking information about the course of monetary policy and interest rates.

Edige expressed her expectation that the Central Bank of the Republic of Turkey (TCMB) will implement a 100-150 basis point interest rate cut in its December meeting. This statement stands out as a significant development that the markets are eagerly awaiting. It is thought that interest rate cuts could have important effects on the management of the economy and inflation targets.

Evaluations were also made regarding the impact of recent inflation increases in Turkey on interest rate policy. While emphasizing the inflation targets set for the end of the year, Edige drew attention to the ongoing uncertainties in the markets in line with the TCMB's new strategies.

On one hand, Edige pointed out that, influenced by global economic conditions, Turkey needs to reassess its monetary policy, focusing on the trends in exchange rates and domestic consumption demands, and evaluating how this situation will reflect on inflation rates. Experts are focusing not only on the momentum that the interest rate cut decision could add to the economy but also on the effects it may create in the markets.

Additionally, based on Edige's evaluations, the views developing on the expectations for inflation and policy interest rate at the end of the year are being closely monitored by economists. It is believed that such adjustments may carry the potential to contribute to the stabilization of the Turkish economy and sustainable growth in the long term.

In summary, Garanti BBVA's senior executives continue to take necessary steps to better understand the dynamics of interest and inflation in the Turkish economy, while providing important information for market players and investors. These evaluations, which affect Turkey's economic outlook, hold great significance for future economic developments.