LONDON- Citi cut its 2021 economic growth estimate for Turkey on Tuesday to 3.4% from 4%, forecasting a drop in activity from the second quarter as external financial conditions tighten.
The bank raised its forecast for year-end inflation to around 15% from 11.7% following the latest slump in the lira. It also struggled to see an economic case for interest rate cuts this year, unless there was a "significant improvement" in inflation and investment inflows.
Turkey's central bank is expected to keep its policy rate at 19% on Thursday at its first meeting since President Tayyip Erdogan fired hawkish former governor Naci Agbal.
(Reporting by Tom Arnold; editing by Marc Jones) ((Tom.Arnold@thomsonreuters.com; +442075428510; Reuters Messaging: tom.arnold.thomsonreuters.com@reuters.net))
