Turkish banks rise as lower CPI raises hopes for rate cut

Turkiye Is Bankasi AS

03/06/2025 09:38

** 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 2.5%

** Turkish annual inflation dipped to 35.41% in May, below a Reuters poll forecast and less than half the level of more than 75% that it reached a year earlier

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

** "Since rate cuts benefit banks, the banking index has risen," Eryılmaz says

     ** Shares of Turkey's Akbank AKBNK.IS, İs Bankası ISCTR.IS and Yapı Kredi YKBNK.IS rise between 4.97% and 5.76%

 (Reporting by Canan Sevgili)

 ((canan.sevgili@thomsonreuters.com))