Capital Economics: It's Unlikely that the Central Bank of Turkey Will Cut Interest Rates This Year

According to Nicholas Farr, an economist at Capital Economics, inflation in Turkey decreased less than expected in October, dampening hopes that the Central Bank would begin to ease monetary policy this year. Inflation fell from 49.4% in September to 48.6%. While many analysts predict that the central bank will lower interest rates before the end of the year, these figures suggest that this appears unlikely. Farr stated, "We expect headline inflation to finish the year around 45%, which is well above the bank's latest forecast of 38%. The potential victory of Republican Donald Trump in the U.S. elections could reinforce this situation, leading to higher Treasury yields and a stronger dollar."