Moody’s raises inflation expectation in Turkey

Credit rating agency Moody’s has raised Turkey’s inflation expectation for the end of 2022 to 68.6 percent.

According to BLOOMBERGHT, Moody’s has changed its 2022-23 growth and inflation forecast for Turkey in the August update of the ‘Global Macro Outlook 2022-23 Report’ published today.

Moody’s raised its inflation expectation for the end of 2022 from 52.1 percent, to 68.6 percent and its inflation expectation for the end of 2023 from 30 percent, to 40 percent.

According to the report, inflationary risks in Turkey are on the upside, and inflation will continue to rise if energy and food prices do not fall.

Moody’s also pointed out in the report that the Central Bank cut its policy interest rate by 100 basis points, despite the fact that annual inflation is approaching 80 percent.