November 30, 2021, 20:17

    SocGen expects ’emergency’ Turkish rate hike as soon as next month

    SocGen expects ’emergency’ Turkish rate hike as soon as next month

    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


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