JPMorgan expects Turkey’s Central Bank to raise interest rates to 40%

Friday 22 May 2026 - 09:15

Investment bank JPMorgan Chase has predicted that the Central Bank of Turkey could soon increase its main interest rate to 40% in response to recent financial and political pressures affecting the country’s economy.

According to analysts from the bank, the Turkish lira continues to face instability due to growing political uncertainty and market volatility. The current benchmark interest rate stands at 37%, but economists believe the central bank may announce a new rate increase during its next monetary policy meeting scheduled for June 11. Some experts also suggest that an earlier decision remains possible if market conditions worsen.

Higher interest rates are often used by central banks to control inflation, stabilize national currencies, and restore investor confidence. In Turkey, inflation and currency fluctuations have remained major economic challenges over the past few years.

Financial observers say that a potential rate hike could help slow inflationary pressures and support the value of the lira. However, tighter monetary policy may also increase borrowing costs for businesses and consumers, potentially affecting economic growth in the short term.

International investors are closely monitoring Turkey’s economic direction as authorities attempt to balance financial stability with domestic economic concerns.