Capital Economics' Forecast on CBT Interest Rate Cut: "Not Likely This Year"

In a note following the inflation data, Nicholas Farr from Capital Economics stated that a rate cut in Turkey this month seems unlikely after inflation decreased less than expected. According to the data released today, prices increased by 47.1% in November, showing only a slight decrease compared to the inflation rate in October. This indicates that year-end inflation will be above the Central Bank's estimate of 44%, increasing the likelihood that policymakers will keep interest rates unchanged in the December policy meeting. Farr noted, "We maintain our forecast that rate cuts will begin in the first quarter of 2025."