"We expect the consumer price index, which reached 21.3 percent in November, to accelerate to about 25 percent and even more in the coming months," Moody's credit rating agency said in a note to clients.

Modez said continued high inflation would limit growth in 2022.

The Agency explained that a possible further reduction in interest rates in December further reduces its expectations and outlook for the Turkish economy.

She expected inflation to range between 17 and 18 per cent by the end of 2022.

Noting that Turkey's continued high inflation will limit economic expansion, she predicted that real GDP growth will now slow to 4 percent in 2022 from an estimated 11 percent this year.

The Agency said that the weakening of the local currency (lira) had strengthened the shift towards the dollar, but that confidence in the banking system remained strong in the absence of indications of withdrawal of deposits.