On investor conference calls this month, Central Bank Governor Sahap Kavcioglu signalled the easing would likely pause in January after one more cut this month. “One critical question, in our view, is what is a low interest rate – 12%, 8% or 5%? The poll also showed an expectation that the policy rate will stand at 12% at the end of 2022, according to the median of eight respondents. Turkey’s real interest rate is deeply negative, a red flag for investors and savers, including Turks who have flocked to hard currencies. Erdogan has ousted three central bank governors in 2-1/2 years and replaced many of its other orthodox policymakers.
