Turkish banks slide on CPI data, rate cut slowdown worries amid global sell-off

Turkiye Is Bankasi AS

03/02/2025 09:49

** Shares in Turkish banks slide as concerns grow about a
potential slowdown in interest rate cuts after
higher-than-expected inflation data amid a global sell-off
    ** Turkey's main banking index  .XBANK  is down 3.15% after
dropping nearly 5%, while Turkish equities  .XU100  fall 1.76%
    ** Turkey's monthly inflation rate rose more than expected
to 5.03% in January due to a minimum wage hike and several
new-year price updates, while annual inflation fell to 42.12%,
data showed on Monday
    ** "The higher-than-expected inflation data raises concerns
that the interest rate cut process could be delayed, triggering
a sell-off in the banking index," Yunus Yenikalaycı, equity
research specialist at Gedik Yatirim, says
    ** Serhat Başkurt, head of algorithmic trading at ALB
Yatırım, notes sharp sell-offs amid concerns over U.S. President
Donald Trump's latest tariffs
    ** "The sell-off in global markets, the higher-than-expected
inflation, and the uncertainty surrounding the interest rate cut
process were the main reasons for the sell-off in the banking
sector," Başkurt adds
    ** Shares of Turkey's Akbank  AKBNK.IS , İs Bankası
 ISCTR.IS  and Yapı Kredi  YKBNK.IS  fall between 2.16% and 5%

 (Reporting by Canan Sevgili)