Deutsche Bank economist Yeit Onai said that the Turkish central bank is expected to cut interest rates twice this year, and the policy interest rate will be lowered from the current 37% to 35%. In a research report released on September 10, he said that uncertainty about energy prices is still a major risk, adding variables to the trend of inflation. In the first half of 2027, a favorable base effect will help inflation fall rapidly. “This is expected to push annual inflation down to around 26.5% in mid-2027” and create room for interest rate cuts to 31.5% at the end of the second quarter. Assuming that the election is held in the first half of 2028 as planned, the bank predicts 25% inflation at the end of 2027 and a policy interest rate of 30%.

Deutsche Bank economist Yeit Onai said that the Turkish central bank is expected to cut interest rates twice this year, and the policy interest rate will be lowered from the current 37% to 35%. In a research report released on September 10, he said that uncertainty about energy prices is still a major risk, adding variables to the trend of inflation. In the first half of 2027, a favorable base effect will help inflation fall rapidly. “This is expected to push annual inflation down to around 26.5% in mid-2027” and create room for interest rate cuts to 31.5% at the end of the second quarter. Assuming that the election is held in the first half of 2028 as planned, the bank predicts 25% inflation at the end of 2027 and a policy interest rate of 30%.