LONDON (Reuters) -JPMorgan reduced its forecast for Turkey’s interest rate cut on Monday and revised its inflation outlook higher, warning that domestic political developments posed upside risks for both benchmark rates and price pressures.
The Wall Street bank said it now expected the central bank, which meets on Thursday, to lower its one-week repo rate by 100 basis points rather than 150 bps.
It added it expected policy makers to cut rates by 100 bps in December and in each monetary policy committee meeting in 2026, which would see the key rate end 2026 at 30.5%.
Meanwhile, the bank revised its year-end inflation forecast up to 32.0% from a previous 31.5%.
“We see upside risks to our inflation and policy rate forecasts for 2025 and 2026 due to domestic political developments,” said Fatih Akcelik at JPMorgan.
(Reporting by Karin Strohecker, editing by Alun John)
Comments