JPMorgan Evaluated The Interest Rate Increase in Turkey

JPMorgan evaluated the interest rate increase in Turkey. The institution stated that it has not changed its estimates for now.

JPMorgan stated in a research report published that they do not expect a change in interest rates until September, and that they expect a cut of 100 basis points in September. Emphasizing that there is not much room for policy change given the high inflation, external financing need and global financial conditions, JPMorgan noted that it is reassuring that the new central bank governor’s commitment to lower inflation, transparency and predictability. Emphasizing that the need for external financing is increasing and capital flows against emerging markets are less supportive, this could increase the potential vulnerability of Turkish assets. JPMorgan stated that there is no change in their forecasts for now and stated that they will wait for CBRT's guidance and data. SocGen announced that they expect the CBRT to reduce the one-week repo rate to 17 percent in the second quarter and to increase to 20 percent in the third quarter. Naci Ağbal was dismissed by the Presidential decree published in the Official Gazette in the first hours of Saturday, and Şahap Kavcıoğlu was appointed as the new head of the CBRT.