Important Change in TCMB Interest Rate Forecast by Societe Generale

Societe Generale's Forecast: Interest Rates Being Updated

The French investment bank Societe Generale has made a new assessment regarding the interest rate policies of the Central Bank of the Republic of Turkey (CBRT). In light of economic data and global developments, the bank's analysts indicate that it is likely for the CBRT to increase interest rates in the short term.

Economic Indicators and Interest Rate Predictions

Societe Generale expects Turkey’s inflation rates to rise up to 60% by the end of the year. This situation emerges as a factor strengthening the CBRT's position. The bank predicts a 25% interest rate hike for 2024, raising its expectation for the Central Bank's ongoing struggle against inflation to a higher level.

Market Reactions and Strategic Recommendations

The effect of these predictions on the markets is noteworthy. Rising interest rates are expected to reduce pressure on the Turkish Lira and encourage domestic investments. Additionally, investors are being warned to turn towards foreign currency accounts. Societe Generale's analysts emphasize that one should approach stock investments with caution.

Conclusion and Expectations

Societe Generale’s current forecasts provide an important roadmap for Turkey’s economic stabilization. The decisions made by the CBRT can have a decisive impact not only on the domestic market but also on international investors. It is crucial for investors to closely monitor developments and update their strategies accordingly.