BofA's CBRT forecast

Bank of America (BofA) Turkey economist Zümrüt İmamoğlu stated that the Central Bank of the Republic of Turkey has room to cut policy rates in December. Sharing her expectations from the TCMB, BofA Securities economist İmamoğlu stated that the bank has room to cut rates in the last quarter. İmamoğlu said that the timing of the rate cut will depend on the data and that there is room to lift some of the macroprudential measures before the rate cuts. It was stated that the base effect and the strong currency caused inflation to fall rapidly and that inflation will probably fall below the policy rate of 50 percent as of September. The report, which saw the slowdown in the trend and the decline in household and real sector expectations as important factors for starting rate cuts, included the statement, "We are not there yet." It was also emphasized in the statement that it would be "difficult" to maintain tight monetary policy to ensure disinflation continues in 2025 while cutting rates.