World Economy

Turkey CB Raises Inflation Forecast to 8.5%

Turkey CB  Raises Inflation Forecast to 8.5%Turkey CB  Raises Inflation Forecast to 8.5%

The Central Bank of the Republic of Turkey raised its inflation forecast for 2017 to 8.5%, citing an upward revision of lira-denominated import prices and the output gap along with higher-than projected inflation in the first quarter and an upward trend in the inflation rate, Anadolu Agency reported. “Inflation is likely to be 8.5% at the end of 2017 and fall to 6.4% in 2018 before stabilizing at around 5% in the medium term,” Governor Murat Cetinkaya said at a news conference held to announce the bank’s second inflation report. “Given a tight policy stance that focuses on bringing inflation down, inflation is estimated to converge gradually to the 5% target,” Cetinkaya said. He forecasted year-end inflation for 2018 to be 4.6% to 8.2% with a mid-point of 6.4%. “Turkey also has received more portfolio inflows recently. Short-term interest rates continued to edge up due to monetary tightening, while the slope of the yield curve reversed and the Turkish lira witnessed lower levels and reduced volatility,” he said.


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