Citigroup Anticipates Turkish Central Bank to Hold Rates Steady in April, Abandons Easing Bias

Deep News03-13 17:43

Citigroup economists project that Turkey's central bank will maintain its current interest rate in April; should foreign exchange reserves remain under pressure and domestic depositor behavior shift, the bank may directly tighten monetary policy.

Economists Ilker Domac and Gültekin Işık from Citigroup noted in a Thursday report, "The overall tone of the policy statement has become more cautious compared to before, indicating that the easing bias has been removed."

Citigroup forecasts that Turkey's year-on-year inflation rate will slow from 30.9% in 2025 to 26% by year-end, but the balance of risks is clearly tilted to the upside.

Market data: - At 7:29 a.m. Istanbul time, USD/TRY rose 0.1% to 44.1912; - The Istanbul Stock Exchange 100 Index increased 0.7% on Thursday, reaching 13286.12 points; - Turkey's 10-year government bond yield climbed 61 basis points on Thursday, to 32.39%; - The U.S. 10-year Treasury yield remained largely unchanged at 4.266%; - Brent crude oil advanced 0.2%, to $100.66 per barrel.

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