JPMorgan scales back Turkey rate cut forecasts

The bank had previously penciled in three 50 basis point cuts in October, Novemeber and December

  

LONDON- Investment bank JPMorgan pushed back and scaled down its Turkish interest rate cut forecasts on Tuesday after figure showed inflation in the country had hit a two-year high last month. 

The bank had previously penciled in three 50 basis point cuts in October, Novemeber and December.

"Following the July data, we have erased the first cut. We now see two 50 bps cuts in the last two months of the year," JPMorgan economist Yarkin Cebeci said in a research note.

"We see the policy rate at 15.0% (up from the previous forecast of 14.5%) at the end of 2022, but as always, a series of factors – macroeconomic and political in nature – create significant uncertainties."

(Reporting by Marc Jones; Editing by Tom Arnold) ((marc.jones@thomsonreuters.com; +44 (0)20 7513 4042; Reuters Messaging: marc.jones.thomsonreuters.com@reuters.net Twitter @marcjonesrtrs))


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