CBRT’s smaller than expected hike accompanied by a hawkish message could be enough to support Lira – SocGen

Economists at discus Turkish Lira (TRY) outlook ahead of the Central Bank of the Republic of Türkiye (CBRT) Interest Rate Decision.

650 bps hike expected today

We expect a 650 bps hike today, taking rates to 15%, followed by two 500 bps hikes in July and August to get to 25 bps. 

A smaller hike accompanied by a hawkish message could be enough to support the Turkish Lira, despite consensus looking for a move to 20% today.

See – USD/TRY: Depreciation pressure on the Lira to return – Commerzbank