British banking giant HSBC maintains its positive view on Turkish equities, saying Tuesday that tensions in the Middle East have delayed, but not derailed, the country's monetary policy normalization.
In a strategy report, HSBC Global Investment Research said Turkish assets remain attractively valued despite recent market volatility and that they have outperformed the FTSE Emerging Markets Index by around 5% since the start of the year.
The bank noted, however, that most of those gains were recorded in January and February, with the market trading in a relatively narrow range after the outbreak of war following joint U.S.-Israeli attacks on Iran in late February.
Higher oil prices have weighed on inflation expectations and prompted the Central Bank of the Republic of Türkiye (CBRT) to keep its one-week repo rate unchanged at 37% for four straight months, postponing the start of its monetary easing cycle.
Türkiye's annual inflation eased for a second consecutive month to 31.75% in July, official data showed Monday.
