Announcement of ‘Interest’ from the World’s Largest Banks

The Central Bank of the Republic of Turkey (Central Bank of Turkey) is one of the institutions that have not fallen off the agenda recently in Turkey.CBT) is coming. Because, successive policy rate cuts in the last period have caused the dollar rate to hit a record high. to break the record and thus affecting the purchasing power. A new statement that came in the past hours is that the interest rate cuts will continue. gave the signals.

The record depreciation of the Turkish lira has been going on for a while. internationally is also on the agenda. While international banks are updating their estimates on the dollar/TL parity, media outlets also reflect on what happened. they make headlines. Now, there has been a new development on the subject. JPMorgan, Goldman Sachs and Deutsche Bank agreed on the CBRT’s rate cut decision. if he insists They evaluated what could happen. The banks’ statements reveal that Turkey is at a critical juncture.

JPMorgan: It is not possible to predict for Turkey

JPMorgan, one of the largest investment banks in the USA, does not make any predictions about Turkey’s interest rate policy. has become impossible explained. Analysts, who stated that the CBRT does not have the space to cut interest rates, stated that Turkey’s import costs will be affected if the interest rate cut is continued. there will be a huge rise they express. Reminding that commodity prices are rising globally, according to JPMorgan, Turkey will face consequences such as higher inflation and slowdown in growth rate if it continues the interest rate cut.

Goldman Sachs: CBRT will raise interest rates by 600 basis points

In the statements made by Goldman Sachs, it is stated that the Turkish lira has experienced a serious decline in recent times. oppression is under emphasis was made. Experts who mentioned that there is a slight recovery in dollarization, that is, if the dollar attracts more attention than TL, said that there is not a huge increase in credit growth. According to Goldman Sachs, the CBRT will be in the second quarter of 2022. It will raise interest rates by 600 basis points.. Thus, the interest rate will rise to 20% again. We will see over time whether this is the case.

Deutsche Bank: Depreciation will continue

In the statements made by Germany-based Deutsche Bank, the current policies need to change it was shot. According to experts, if the current policies are maintained, the appreciation rally of the dollar against the Turkish lira will continue. This will negatively affect inflation and growth rates. According to Deutsche Bank experts, if policy changes are not made, the Turkish economy will structural vulnerabilities will begin to happen…