Wall Street Divided on Turkey as Goldman, JPMorgan See Rate Hike

Economists at some of the biggest Wall Street banks are divided over how long Turkey can sustain its extraordinarily low interest rates, with JPMorgan Chase & Co. and Goldman Sachs Group Inc. now expecting a sharp policy reversal soon after elections slated for May.

The central bank may need a massive rate increase to heights not seen in at least a decade, according to JPMorgan and Goldman Sachs, who both predict the benchmark will rise to 30% in the third quarter, or more than triple its current level.