Goldman Sachs expects Turkey’s interest rate hike on Thursday to be the last in the current tightening cycle, standing out from other banks that forecast monetary tightening has further to go.
Rates won’t go any higher than the current 42.5%, unless there is an inflation surprise, analysts Clemens Grafe and Basak Edizgil wrote in a report dated Dec. 21. Borrowing costs will start to ease after the third quarter, reaching as low as 25% by year-end, they said.
Read More : Goldman Sachs Distinctive in Predicting Turkish Rates Have Reached their Peak