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Goldman sees later Turkey rate cut, higher year-end inflation

BY Reuters | ECONOMIC | 10/04/24 04:57 AM EDT

ISTANBUL, Oct 4 (Reuters) - Wall Street bank Goldman Sachs (GS) said on Friday it expects Turkey's central bank to cut interest rates in January, rather than a previous forecast of November, after data on Thursday showed monthly inflation well higher than expected in September.

Goldman also raised its year-end inflation forecast to 44% from 40%.

Sequential inflation - which was nearly 3% last month - remains "well above the level we think is necessary" for the bank to start cutting rates, it said.

"Lack of a slowdown in inflation and the continued erosion of households' purchasing power also raises the possibility of a higher minimum wage increase in December and adds to upside risks to inflation for next year." (Reporting by Jonathan Spicer; Editing by Daren Butler)

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