Nomura Economist Imamoglu: Normalization Expected from Turkey's Central Bank

Nomura Senior Turkey Economist Zumrut Imamoglu commented on the disinflation process. Imamoglu stated that the June inflation data has created room for the central bank to consider interest rate cuts. He noted that this development paves the way for the Central Bank of the Republic of Turkey (TCMB) to take a normalization step in its monetary policy. Imamoglu predicted that as inflation trends downward, the central bank could gradually ease its current tight stance. The economist emphasized that the timing and pace of this normalization would depend on the inflation outlook. The Nomura economist added that if the TCMB proceeds with rate cuts, it could be positively received by markets, but inflation expectations must be kept under control. Imamoglu highlighted the importance of the central bank maintaining a cautious approach to preserve its credibility. This is not investment advice.