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The Turkish central bank preserved its earlier shared inflation forecast for the end of this year on Thursday, as it expects that domestic demand will continue weakening due to the monetary policy, its governor said while presenting the quarterly report.
Annual consumer inflation is expected to reach 38% this year, Central Bank of the Republic of Türkiye (CBRT) Governor Fatih Karahan told a briefing in Ankara, held to release the bank’s third inflation report of this year.
The monetary authority also kept the estimates unchanged for next year, at 14% and 9% for 2026, as announced in its previous report earlier this year.
“As we approach the year’s end, the forecast range corresponding to 2024 should have narrowed down mechanically. However, given the mounting uncertainties amid recent geopolitical developments and global financial volatility, we kept the forecast range between 34% and 42%,” Karahan said.
The governor touched upon the steps the bank has undertaken recently to rein in inflation, recalling that the country has entered a period of disinflation.
Since last year, the CBRT has hiked its key policy rate to 50% from 8.5% as officials began to reverse the prior policy of lower rates.
The annual inflation rate slowed below 62% in July, which marked a sharp drop compared to the June reading and the lowest level registered since October last year.
