Turkish Rate Cut Likely Months Away for Economy Going in Reverse
- Analysts unanimously predict key rate staying at 50% Thursday
- Inflation on track to start slowing after May’s peak above 75%
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Turkey’s central bank is set to stick with an interest-rate pause that’s likely to last through much of the year or even beyond, engineering a slowdown in the economy to lower one of the world’s highest levels of inflation.
Economists surveyed by Bloomberg are unanimous in forecasting the one-week repo rate will be kept at 50% on Thursday for a third straight month. Wall Street lenders like Bank of America Corp. anticipate the first cut closer to the end of this year, while Morgan Stanley pushed back its expectations of easing to the first quarter of 2025.