LONDON, May 22 (Reuters) – Investment bank JPMorgan said on Friday that Turkey’s central bank was likely to hike its key interest rate to 40% and could even do so before its next planned meeting in June following the latest bout of politically-driven market turbulence.
“Rising political risks come at an unhelpful time for the lira,” JPMorgan analysts said in a research note.
“We now expect the CBRT (Turkish central bank) to hike its one-week repo rate to 40%, from the current 37%, at the June 11 MPC meeting, or potentially earlier.”
(Reporting by Marc Jones, editing by Karin Strohecker)