JPMorgan expects Turkey central bank to lift rates to 25% on June 22
2023.06.12 04:28
© Reuters. FILE PHOTO: Turkey’s Central Bank headquarters is seen in Ankara, Turkey in this January 24, 2014 file photo. REUTERS/Umit Bektas
LONDON (Reuters) – JPMorgan (NYSE:) said on Monday it expects Turkey’s central bank to hike interest rates to 25% from the current 8.5% at its June meeting, adding this could come with forward guidance suggesting smaller hikes ahead if needed.
June 22 is the first scheduled policy meeting after Hafize Gaye Erkan was appointed as central bank governor on Friday.
“We maintain our year-end policy rate forecast at 30%, with risks on the upside,” Nicolaie Alexandru-Chidesciuc wrote in a note to clients.
“We forecast a recession in 2H23 on the back of a tightening in credit conditions.”
The Wall Street bank confirmed it expected the country to tip into recession in the second half of the year due to tightening credit conditions.
