US investment bank JPMorgan announced that it reduced its 2026 year-end interest rate forecast for Türkiye from 37 percent to 35 percent.
The bank cited the sharp decline in oil prices following the ceasefire in the Iran War and the recent monetary loosening signals from the CBRT as justification for this revision.
JPMorgan stated that the central bank will likely restart weekly repo auctions next month and that this step will reduce the effective funding rate from 40 percent to 37 percent.
Bank analysts stated that they predicted that the central bank would reduce the policy rate by 100 basis points to 35 percent in each of its meetings on September 10 and October 22, “in line with falling energy prices and the CBRT’s verbal guidance in favor of monetary relaxation.”
