Türkiye’s central bank has kept its inflation forecast steady, reflecting confidence that domestic demand will weaken under its restrictive monetary policy.
Governor Fatih Karahan, speaking at a quarterly presentation in Ankara, reaffirmed the bank’s expectation for inflation to end 2024 at 38%, with next year’s estimate unchanged at 14%. These forecasts serve as temporary targets to anchor inflation expectations.
Türkiye’s inflation rate is 62%, one of the highest globally. Despite this, the central bank has left interest rates unchanged for four consecutive meetings.
Governor Karahan also maintained the bank’s food inflation forecast for this year while lowering its oil price projection. Meanwhile, Turkish Treasury and Finance Minister Mehmet Simsek has forecast year-end inflation to be around 40%.
