Deutsche gives positive assessment for TL assets after the election

new positive assessment of Turkish lira assets was added to the list of foreign institutions after the elections. Following Goldman Sachs, Deutsche Bank stated that they were positive for Turkish assets following the completion of the elections. Deutsche Bank stated that it saw more room for local and foreign exchange Turkish assets to perform following the elections and that the results underlined the importance of maintaining the current economic policy set to control inflation. Economist Yiğit Onay and Strategist Christian Wietoska stated in a report that "President Erdoğan's initial statements following the elections showed that he continued to support the current economic program. With the conclusion of the local elections, attention has now turned to the policy framework and the course of orthodox economic policies that have been implemented since last year's general elections." Deutsche Bank said that it is unlikely that the negative election results for the ruling AK Party will lead to a reversal of tightening economic policies and that it predicts that Turkey's current orthodox economic framework will most likely continue. Deutsche Bank emphasized that this continuity in economic policies is crucial to facilitate the necessary rebalancing of the economy, encourage disinflation and steer the Turkish economy onto a more sustainable trajectory. Deutsche Bank's report included the following assessments: "We believe that the current policy rate of 50% is sufficiently high to facilitate the desired rebalancing in the economy, especially if it can be effectively reflected in TL deposit rates." The report predicted that the worst is over and that pressure on the reserve position will ease following the local elections, with dollarization reversing domestically, moderate inflows from foreign investors and a more positive outlook for the current account balance. Stating that it believes that local elections will not be a game changer in determining economic policies and will not lead to a partial or complete 'U' turn in the current economic program, Deutsche Bank stated that the results of the 2024 local elections are likely to result in efforts to control high inflation continuing decisively.