May 23, 2024 13:28 GMT
ING Forecast CBRT to Maintain Rate at 50% For Longer
TURKEY
- The CBRT’s stance with the additional tightening moves announced today will contribute to a return to the disinflation path, according to ING.
- Support from the fiscal policy will likely be limited given the relatively small size of the recently announced package of measures, which include cutting purchases of goods and services and investment spending to control the widening in the budget deficit.
- Assuming the currency follows a more stable course for the rest of the year with the continuation of the tight monetary stance, ING expect inflation to be in the CBRT’s forecast range with the central bank keeping the policy rate on hold at 50% for longer. ING factor in a small cut by end-2024.
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