IIF sees surprise 50-point Turkey rate cut next week

The Institute of International Finance expects Turkey’s central bank to cut interest rates by 50 basis points next week and to ease policy by an additional 150 points by year-end, bringing the key interest rate down to 17 percent.

“With the (central bank) pointing out that future policy making will focus more on core dynamics, we project that the central bank will begin its widely anticipated easing cycle in September with a 50bps cut,” the IIF said in a Wednesday note.

A big majority of economists polled by Reuters expect the bank to maintain rates at 19 percent when it holds a policy meeting on September 23.