JPMorgan predicts Erdogan's reelection could lead to 25% interest rates in Turkey
JPMorgan expects Turkey's Monetary Policy Committee to raise interest rates to 25% from the current 8.5% at their meeting on June 22, or possibly earlier.
The bank also forecasts a year-end policy rate of 30%.
Turkey's years of unconventional monetary policies have been criticized for contributing to investor uncertainty and eroding voter confidence ahead of President Erdogan's reelection.
However, the return of veteran policy maker Mehmet Simsek to head the Finance Ministry has sparked guarded optimism for a shift in monetary policy.
Turkey's years of unconventional monetary policies have been criticized for contributing to investor uncertainty and eroding voter confidence ahead of President Erdogan's reelection.
However, the return of veteran policy maker Mehmet Simsek to head the Finance Ministry has sparked guarded optimism for a shift in monetary policy.