Central Bank shares its yearly inflation forecast as 9.4 percent for end of 2021

The Central Bank which has long been wrong in its inflation and exchange rate forecasts and has frequently revised them, announced its inflation expectation for the end of 2021, at 9.4 percent. The bank had earlier announced an inflation expectation of 7.4 percent for 2020 and 5.4 percent for 2021.

Central bank governor Naci AGBAL announced the first inflation report for 2021. He said in his speech “Monetary tightening will continue with determination for a long time.” AGBAL who stated that the current level of inflation is quite far from the expectation of 5 percent, said that the level between the expected inflation rate policy and the interest rate policy would be created by observing a strong disinflation balance, and gave the message that there would be a new interest rate increase if necessary. He also stated that it was too early to talk about an interest rate cut.

In his statement he said that they had maintained the inflation forecasts predicted in the October inflation report.