Turkey: Central Bank keeps inflation forecast unchanged
Turkey's year-end inflation rate projected at 8.2% this year, 5.4% in end-2021, says Turkey's Central Bank governor
ANKARA
Turkey's Central Bank on Thursday announced its inflation forecasts for 2020-21 remain unchanged.
The bank projected Turkey’s year-end inflation to stand at 8.2% at by the end of 2020 and 5.4% at end-2021, the governor Murat Uysal said during a meeting on inflation report 2020-I.
It is also expected to stabilize around 5% in the medium term, he added.
In its previous report on inflation the bank predicted same rates for the inflation in Turkey for 2020-21.
The latest report said Turkey’s risk premium declined significantly thanks to improvement in macroeconomic indicators and global developments.
"Wide-spread improvement in inflation expectations and increased consensus among individual expectations indicate that uncertainties regarding the medium-term inflation outlook have decreased to a large extent," it added.
"Due to improvement in inflation expectations and decline in the country risk premium, long-term interest rates fall, domestic demand strengthens, investment tendency and labor markets display signs of recovery," said the report.
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