KaiTuo Macro: The Central Bank of Turkey is unlikely to cut interest rates this month

According to Nicholas Farr, an analyst at Capital Economics, it seems unlikely that Turkey will cut interest rates this month as inflation has slowed less than expected. Data released on Tuesday showed that prices rose by 47.1% in November, only slightly lower than the inflation rate in October. This suggests that the year-end inflation rate is likely to be higher than the Central Bank’s expected 44%, making it more likely that interest rate setters will keep interest rates unchanged at the December policy meeting. Farr expects the Turkish Central Bank to start cutting interest rates in the first quarter of 2025.