ISTANBUL, Oct 3 (Reuters) - Goldman Sachs said on Monday it now expects the Turkish central bank to cut its policy rate by 100 basis points every month until the end of the year, after President Tayyip Erdogan called for single-digit interest rates by year-end.
"Given that we see the TCMB as largely disconnected from the monetary policy stance ... we think the TCMB is likely to continue cutting rates and will now forecast 100bps of cuts every meeting until year-end," it said in a note.
Funding and macroprudential policies that have remained restrictive so far will likely loosen significantly closer to the election, it added.
The Turkish central bank's policy rate stands at 12%, after two unexpected 100-basis point cuts in the last two months. (Reporting by Ali Kucukgocmen Editing by Chris Reese)
