Barclays Forecasts Turkish Interest Rates to Reach 36%

Economic expert at Barclays, Erkan Erguzel, reiterated today, Monday, that the Turkish central bank is expected to raise interest rates to 36% by the end of the year, following President Recep Tayyip Erdoğan's victory in the presidential elections on Sunday. Erguzel noted that "there is a need for adjustments to both interest rates and foreign exchange rates," pointing out that "the relative decrease in pressures from external financing needs has provided policymakers with the opportunity to make this adjustment gradually." He added, "We expect interest rates to reach 36% by the end of 2023, but it is clear that risks are tilted towards a decrease."