JPMorgan Revised The Interest Rate Forecast

In a report published by JP Morgan, it revised its interest rate expectation.

JPMorgan revised the interest rate forecast. In a research report released by JPMorgan, it revised its year-end inflation and interest rate decision expectations for March. The world-renowned investment company stated in its research report that they have adjusted their inflation forecasts for the year and that they expect an interest rate increase of 100 basis points in March. Stating that inflation was above expectations for the fourth month in a row, the institution revised its inflation expectations from 10.5 percent to 11.2 percent for the end of 2021. Stating that the upward trend in inflation occurred due to factors that are not in the control of the Central Bank of the Repuclic of Turkey (CBRT), JPMorgan stated that the continuation of the increase in inflation may harm the hard-won credibility. Noting that it expects the CBRT to increase the policy rate to 18 percent due to all these factors, JPMorgan stated that the worsening in risk appetite, increasing commodity prices and the weak Turkish Lira may force the bank to increase the interest rate more sharply in the future. JPMorgan predicts inflation will be at 16.3 percent in April, and states that there will be a gradual decline in inflation from now on.