JPMorgan Postpones Rate Cut Forecast Amid Middle East Tensions

JPMorgan has delayed its forecast for interest rate cuts by the Central Bank of the Republic of Türkiye (CBRT) due to renewed military tensions in the Middle East and oil prices approaching $100 per barrel.

The US investment bank had previously expected two 100-basis-point cuts in September and October, but has now moved these expectations to the CBRT's October and December meetings.

JPMorgan said the central bank's effective funding cost is likely to remain at 40% until the geopolitical crisis eases, delaying the normalization of its operational funding framework.