JPMorgan raises its inflation forecast for Turkey and expects an interest rate cut of 100 basis points | latest news


JPMorgan said Thursday (October 21) that it expects Turkey’s central bank to cut interest rates by another 100 basis points in November, sharply raising its inflation forecast.

Turkey surprisingly cut its benchmark interest rate by 200 basis points despite persistent high inflation, pushing the Turkish lira to a new record low.

“Such initial easing indicates that lowering inflation in a rapid manner is not a policy priority,” JPMorgan’s Yarkin Cebeci said in a note to clients.

“We fear that this step will only enhance price pressures, and we have revised our inflation forecasts to 19.9% ​​for this year and to 16.4% in 2022,” he added.

JPMorgan had previously forecast that inflation in Turkey would reach 16.7% by the end of 2021.


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