ING expects the Central Bank to lower interest rates again in April.

Foreks - ING Global projected that the Central Bank of Turkey (TCMB) will also make a rate cut in April.

In a report published today, ING stated, "Inflation is expected to decline further in March, and a rate cut of 250 basis points may be made in April."

ING also emphasized that the future decisions of the Central Bank will depend on factors such as foreign currency deposits, exchange rates, and foreign reserve levels.

Pointing out that in February the Central Bank shifted from buying foreign currency to selling it due to increased local demand, ING noted, "Continued pressure on the currency may lead to tighter policies, smaller rate cuts, or a pause. The Central Bank is adopting a flexible approach by deciding on interest rates at each meeting and signaling more cuts as inflation decreases."

While risks continue to be on the upside, ING expressed that they expect inflation to be at 27% and the policy rate at 29% by the end of 2025. They added, "Despite the tighter credit growth limits imposed in January, bank loans, especially foreign currency loans, have accelerated. The Central Bank further lowered the growth limit for foreign currency loans to slow this trend and narrowed exemptions for such loans."