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JPMorgan said, on Monday, it expects Turkiye’s Central Bank to hike interest rates to 25 per cent from the current 8.5 per cent at its June meeting, adding this could come with forward guidance suggesting smaller hikes ahead if needed, Reuters reports.
According to the report, 22 June is the first scheduled policy meeting after Hafize Gaye Erkan was appointed as Central Bank Governor on Friday.
“We maintain our year-end policy rate forecast at 30 per cent, with risks on the upside,” Nicolaie Alexandru-Chidesciuc wrote in a note to clients.
“We forecast a recession in 2H23 (second half of 2023) on the back of a tightening in credit conditions.”
The Wall Street bank confirmed it expected the country to tip into recession in the second half of the year due to tightening credit conditions.