Deutsche Bank forecasts further CBRT rate cut
Deutsche Bank expects the Central Bank of the Republic of Türkiye (CBRT) to continue its monetary easing cycle, forecasting an additional 100-basis-point interest rate cut in December.
Christian Wietoska, the bank's Director for Central and Eastern Europe, the Middle East and Africa (CEEMEA), stated that domestic demand in Türkiye is beginning to slow and financial conditions remain significantly tight. Deutsche Bank projects that annual inflation will reach 30% by the end of 2026.
Wietoska maintained a positive outlook on Turkish lira-denominated bonds, reiterating the bank's overweight recommendation for these assets. He noted that Türkiye's bond market has outperformed those of other emerging economies, while selling pressure continues in equities. Despite elevated energy prices and global uncertainties, Wietoska argued that the CBRT has managed the monetary policy process effectively. Highlighting stability in dollarization trends, he added that Türkiye continues to offer attractive opportunities for carry trade investors.
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