NEW YORK (Reuters) -Goldman Sachs lowered its expected rate cut from next week’s Turkish central bank meeting to 200 basis points, from the previous 350 bps, citing recent data showing both strong economic growth and hotter-than-expected inflation.
“With Q2 GDP growth far surpassing expectations— despite weaker domestic demand—and August inflation coming in higher than forecast, we believe the (Turkish central bank) will opt for a smaller cut compared to the previous meeting,” Goldman said in a Thursday note.
JPMorgan on Wednesday said it also expects a policy rate cut of 200 basis points at the Sept. 11 meeting, down from a previously anticipated 300 basis points.
(Reporting by Rodrigo Campos in New York, editing by Libby George)
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