LONDON (Reuters) – JPMorgan doubled its Turkish rate-hike forecasts for the coming months on Thursday, predicting that fiscal spending plans and higher inflation would see them go up by another 10 percentage points over the next two central bank meetings.
“We now expect rate hikes to be front-loaded: 500bp hike in September and 500bp in October MPC instead of 250bp previously, considering expected fiscal loosening and upside inflation surprisesl,” the investment bank said in a note.
It added that there were also “upside risks” to its year-end policy rate forecast of 35% and its 2024 year-end forecast of 45%.
(Reporting by Marc Jones; Editing by Amanda Cooper)