JPMorgan stated on Friday that, due to market volatility triggered by a new round of political factors, the Turkish Central Bank is highly likely to raise its benchmark interest rate to 40%, potentially even implementing the hike ahead of the scheduled monetary policy meeting in June.
Analysts from JPMorgan noted in a research report, "Rising political risks are putting pressure on the lira exchange rate."
"We currently anticipate that the Turkish Central Bank may increase the one-week repo rate from the current 37% to 40% at the Monetary Policy Committee meeting on June 11, with the possibility of an earlier rate hike also existing."
Comments