ISTANBUL, Nov 22 (Reuters) – Societe Generale said on Monday it expects Turkey's central bank to deliver an "emergency" interest rate hike late this year or early next year, leaving the policy rate around 19% in the first quarter of 2022, up from 15%.
However, it said such a move would still leave markets dissatisfied, and would be insufficient to prevent the lira from underperforming.
"The past 400 (basis points) worth of interest rate reductions implemented during the past 3 MPC meetings have been economically and fundamentally unjustified. Inflation expectations have continued to deteriorate," SocGen analysts said in a client note.
Register now for FREE unlimited access to reuters.comRegisterReporting by Jonathan Spicer;
Writing by Daren Butler