Turkey's Inflation Expectations Drop Below 45%, CBRT Rate Decision Sparks Market Tremor

Inflation Expectations Drop Below 45%\n\nThe CBRT's inflation target of %5 has approached %42 in recent surveys.\n\n## Anticipated CBRT Rate Decision\n\nMarkets expect the CBRT to cut the %25 policy rate by %25 percentage points at its September meeting.\n\n## Market Impact and Investor Reaction\n\n- Inflation expectations below %45 keep real rates above %20.\n- A potential %25 cut by the CBRT could limit the lira's %15 depreciation.\n- Investors are shifting toward assets offering %30+ returns.\n\n> Markets are tilting toward high‑yield assets as falling inflation lifts real returns, yet the CBRT’s aggressive cutting cycle could spike volatility in foreign exchange rates.