Societe Generale: Türkiye is expected to raise int

Aihucha News, September 13: Societe Generale expects that the Turkish Central Bank will raise its main interest rate to 31% in September, followed by another 600 basis points of monetary tightening in the fourth quarter, and first in 2024. The quarter ended with a 200 basis point hike in interest rates to 40%. Analysts including Phoenix Kalen said in a note that the Turkish lira was "likely to weaken further" over the remainder of the year, predicting the currency would fall to 30 by the end of the year. They said that while rates were likely to rise steadily in the coming months, real rates would still fall sharply as inflation soared. In the medium to long term, a more flexible normalization of Turkey's financial conditions is positive, but in the short term, the lira is likely to weaken further. In addition, they expect that with the gradual return of orthodox policies, Turkey's fundamentals may improve next year and the lira's depreciation will slow further in 2024.