09:00 - 5.08.2026

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August 5, Fineko/abc.az. In a research note following July’s inflation release, Goldman Sachs analysts stated that interest rates in Turkey will need to stay elevated for a more extended period.

Economists Clemens Grafe and Basak Edizgil highlighted that the phased phase-out of the sliding-scale tax mechanism ("eşel mobil") by October, alongside volatile global energy prices driven by Middle East conflicts, will reinforce the Central Bank of Turkey's cautious stance. Annual inflation slowed slightly to 31.8% in July (down from 32.1% in June), yet remains well above the central bank’s year-end target of 26%.

Goldman Sachs noted upside risks to its 29% year-end inflation estimate, emphasizing that energy price pressures and potential Turkish Lira depreciation necessitate prolonged high interest rates, despite broader improvements in underlying core inflation metrics.