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

By Aysu Bicer

ANKARA (AA) - 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.

Kaynak:

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