Turkish banks up after Erdogan's comments spur rate cut expectations

Turkiye Is Bankasi AS

08/11/2024 15:05

** Shares in Turkish banks rise in the afternoon on Friday 
on hopes of a possible interest rate cut after President Tayyip
Erdoğan signals inflation could drop with lower rates
    ** Turkey's main banking index  .XBANK  is up 4.88%, lifting
the main stock market index  .XU100  to +2.51%
    ** President Erdogan was quoted on Friday as telling
reporters that "no one should doubt" the steady decline in
inflation and that economic steps would continue with discipline
and determination to ease price pressures
    ** Erdogan also expressed hope that inflation would drop
alongside interest rates
    ** Yusuf Doğan, Head of Global Markets Research at Info
Yatırım, said that despite rising inflation expectations and a
more challenging rate cut scenario in 2024, Erdoğan's statement
that inflation would fall with interest rates may have increased
expectations for a cut in 2025 
    ** "As a result, market participants have shown heightened
interest in banking index during today's session," Dogan says
    ** Turkey's Akbank  AKBNK.IS , İs Bankası  ISCTR.IS  and
Yapı Kredi  YKBNK.IS  rise between 4.34% and 6.94%
    
    

 (Reporting by Canan Sevgili)
 ((canan.sevgili@thomsonreuters.com))