Title: Goldman Sachs Anticipates Interest Rate Hike in Turkey to 40%

Goldman Sachs stated on Friday that the appointment of "Mohammad Şimşek" as Turkey's Minister of Treasury and Finance and "Hafize Gaye Erkan" as the Central Bank Governor indicates a broad understanding within the new administration of the necessity for monetary and fiscal adjustments. The bank revised some of its forecasts for Turkey, stating that economic stability "will require a significant adjustment, and we believe it will be gradual, concerning the exchange rate." Clemens Graf mentioned in a note to the bank's clients, "From our perspective, this suggests that the traditional policymaker will raise interest rates to 40 percent, the current level of the deposit interest rate." Graf added that once the exchange rate and inflation expectations stabilize, interest rates could be rapidly lowered, possibly to 25 percent by the end of the year. Goldman Sachs has also revised its GDP growth forecast for Turkey to 2.3% year-on-year in 2023, down from a previous estimate of 2.9%.