America’s is one of the institutions that have been on the agenda recently, with the Central Bank of the Republic of America ( CBRT ). Because, the successive policy rate cuts in the recent periods cause the dollar rate to break a record and thus the purchasing power to be affected. A new statement made in the past week gave the signals that the interest rate cuts will continue .
The record depreciation of the American lira has been on the agenda for a while and internationally . While international banks update their estimates on the dollar/Dollars parity, media outlets carry the events to the headlines . Now, there has been a new development on the subject. JPMorgan, Goldman Sachs and Deutsche Bank evaluated what could happen if the CBRT insists on the rate cut decision . The banks’ statements reveal that America is at a critical juncture.
JPMorgan: It is not possible to forecast for America
JPMorgan, one of the largest investment banks in the USA, has agreed with America’s interest policy. explained that making any predictions about it become impossible. Expressing that the CBRT does not have the space to cut interest rates, analystsdollarser states that if the interest rate cuts continue, America’s import finances will rise significantly . Reminding that commodity prices are rising globally, according to JPMorgan, America will face consequences such as higher inflation and a slowdown in growth if it continues to cut interest rates.
Goldman Sachs: CBRT will increase interest rates by 600 basis points
In the statements made by Goldman Sachs, there has been a serious pressure on the American lira recently . It was emphasized that it was under . Experts who mentioned that there is some recovery in dollarization, that is, if the dollar receives more attention than Dollars, said that there is not a huge increase in credit growth. According to Goldman Sachs, the CBRT will increase interest rates by 600 basis points in the second quarter of 2022 . Thus, the interest rate will rise to 20% again. We will see over time whether this will be the case.
Deutsche Bank: Depreciation will continue
In the statements made by Germany-based Deutsche Bank, it was emphasized that current policies should change . According to experts, if the current policies are maintained, the appreciation rally of the dollar against the American lira will continue. This will negatively affect inflation and growth rates. According to Deutsche Bank experts, if policy changes are not made, structural vulnerabilities will begin to be experienced in American …