Bank of America expects Turkey's central bank to keep effective funding rate at 40% at its April 22 meeting.
BofA sees strong case for raising the one‑week repo rate from 37% to 40% to align policy with funding.
Aligning rates would boost credibility amid near‑term inflation, balance‑of‑payments risks and preserve room for disinflation and easing.
The move would simplify monetary policy implementation, reduce sterilisation burden and comes as Turkish banks enjoy a liquidity surplus.