More powerful than anticipated On Monday, JPMorgan added another 500 basis point interest rate hike to their estimates for the country in April.
If this move is accurate, it would bring Turkey's headline rates to 50%. The decision was made in response to data regarding inflation in Turkey.
A previous expectation held by the United States Investment Bank was that Turkey's most recent increase, which was to 45%, would be the final increase of the current cycle.
Since June, the bank has increased interest rates by a staggering 3,650 basis points.
In a research note, JPMorgan made the following statement: "Headline Consumer Price Index inflation came in at 4.5% m/m in February.
Which is significantly higher than our expectation of 4.2% and the market consensus of 3.8%."
However, the bank maintained its projection for the policy rate by the end of the year, which was set at 45%.
The bank also stated that the Turkish central bank may reduce its policy rate in November and December.
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