JPMorgan expects CBRT rate hike in April

JPMorgan expects the Central Bank of the Republic of Turkey to hike interest rates by 500 basis points in April after inflation exceeded expectations in February. JPMorgan forecast that the Central Bank of the Republic of Turkey (CBRT) would raise its policy rate by another 500 basis points to 50% in April after inflation exceeded expectations in February. JPMorgan had previously predicted that the CBRT would end its interest rate hike cycle with an interest rate hike of 45%. The consumer price index (CPI) increased by 67.07% annually in February, exceeding expectations of 66%. The CPI increased by 4.53% monthly in February. The expectation for monthly inflation had been 3.8%. JPMorgan said in a research note, “Headline inflation came in at 4.5% monthly in February, well above our expectation of 4.2% and the market expectation of 3.8%.” JPMorgan kept its year-end policy rate forecast at 45 percent but stated that the CBRT could cut interest rates in November and December.