Morgan Stanley, Barclays in Doubt Over Turkish Rates Staying Put

Economists at Morgan Stanley and Barclays Plc are having second thoughts about Turkish interest rates remaining on hold through the rest of the year after a faster-than-forecast start to disinflation.

The first slowdown in price growth in eight months has taken the most hawkish forecasters by surprise with a deceleration that was more abrupt than anyone had anticipated. Though it hasn’t prompted an outright revision of calls quite yet, Barclays economist Ercan Erguzel said the central bank may make its first move in the fourth quarter instead of January.