Higher-than-expected inflation data for August published on Monday prompted JPMorgan to revise its year-end inflation forecast to 65 percent from 62 percent, with the annual rate now expected to peak at 73 percent in May 2024, Reuters reported, citing the Wall Street bank.
The bank also said it saw upside risks to its year-end policy rate forecast, which it kept at 35 percent, but predicted that the central bank’s key interest rate would end next year at 45 percent rather than previous estimates of 40 percent.
“August CPI suggests protracted disinflation process,” JPMorgan’s Fatih Akçelik said in a note to clients.
“Since we expect persistent inflation, we forecast more monetary tightening to address inflationary pressures after March 2024 municipal elections.”
Turkey’s annual inflation rate surged to a higher-than-expected 58.94 percent in August, official data showed earlier on Monday, rising for a second month after a steep fall in the lira currency and recent tax increases.