Turkish banks rise as lower CPI raises hopes for rate cut

Turkiye Is Bankasi AS

03/03/2025 08:59

**  Shares in Turkish banks rise as lower-than-expected inflation data boosts hopes for interest rate cuts that could drive higher banking activity

** Turkey's main banking index .XBANK rises 5.3%, while Turkish equities .XU100 are up 2.3%

** Turkish annual consumer price inflation dropped to 39.05% in February, lower than a Reuters poll forecast, marking a continued a downtrend since it peaked at about 75% in May 2024

** ALB Yatirim's chief economist, Filiz Eryılmaz, says the lower-than-expected inflation has strengthened the outlook for interest rate cuts

** "The increased expectations for rate cuts have brought buying activity into the banking sector and boosted risk appetite," Eryılmaz adds

   ** "The lower-than-expected inflation raised the likelihood of a 250 basis point interest rate cut by the Central Bank of the Republic of Turkey on Thursday, leading to increased risk appetite in the banking sector," Yunus Yenikalaycı, an equity research specialist at Gedik Yatirim, says

** Shares of Turkey's Akbank AKBNK.IS, İs Bankası ISCTR.IS and Yapı Kredi YKBNK.IS rise between 4.5% and 6.7%

 (Reporting by Canan Sevgili)

 ((canan.sevgili@thomsonreuters.com))