Turkey Could Raise Interest Rates in Q4

Goldman Sachs expects that the Turkish central bank might move to cut its key rate during the fourth quarter of the year.

The Central Bank of Turkey decided to maintain interest rates unchanged on Thursday in the first Monetary Policy Committee (MPC) meeting under the new leadership, in a move that was expected.

The MPC held the main interest rate unchanged at 19%, despite the rise of inflationary pressures on the local currency.

It is worth noting that the inflation rate in Turkey currently stands at 15%.

Meanwhile, the Turkish Lira continued to decline against the U.S. Dollar (USD), losing about 8% since the beginning of the year.

Last month, The Turkish President decided to fire the former central bank chief, opposing his policy of raising interest rates to cope with the rising inflation and currency depreciation.

Sahap Kavcioglu was appointed to head the central bank, becoming the fourth governor to lead the bank in two years.