Hakan Aran, head of İş Bank, the country’s largest private lender, said they expect Turkey’s annual inflation to drop to 29% by the end of 2025, with interest rates falling to 35%.
Aran shared his predictions regarding the economic normalization process at a press conference. According to Aran, “we may see monthly inflation rates drop below 1% as the normalization process begins in May 2026.”
He said that the second quarter did not go well and that interest rates returned to their levels at the beginning of the year, with the interruption of the interest rate reduction cycle in mid-March.
Aran expressed hope for the third quarter and the last quarter of the year, saying that the cutting cycle, which was interrupted in mid-March, resumed in July.
He stated that if his inflation expectations are met, macroprudential measures could be relaxed next year.
