JPMorgan sees Turkey central bank lift interest rates to 40% imminently

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)