According to Citigroup, a rate cut by the Central Bank of Turkey is on the table in December.

Foreks - Citigroup economists Ilker Domaç and Gültekin Işıklar highlighted in a report following the Central Bank of the Republic of Turkey's (CBRT) decision to keep the policy interest rate at 50% that the possibility of an interest rate cut in December is strongly on the agenda.

The economists stated in their note that by evaluating the CBRT's Monetary Policy Committee announcement and recent economic indicators, conditions for an interest rate reduction have begun to materialize. The note mentioned, “The Monetary Policy Committee's assessment that domestic demand is more supportive of the disinflation process and that clearer signs of improvement have been observed in service inflation, combined with statements indicating an increased coordination between fiscal and monetary policy, suggests that the possibility of a rate cut in December remains on the table.”