Turkey’s Central bank raises year-end inflation and US dollar forecast

The central bank of Turkey has raised its year-end inflation forecast to 11.46 percent from 10.82 percent and its year-end dollar forecast to 7.60 from 7.34.

The central bank published the “September 2020 Expectations Survey”, which it conducted with 59 participants consisting of representatives of the real sector, financial sector and professionals. Accordingly, the year-end inflation expectation, which was 10.82 percent in the previous survey period, rose to 11.46 percent, and the dollar expectation rose from 7.34 to 7.60 percent.

CPI FORECAST

According to the central bank (CBRT) expectations survey, the CPI expectation after 12 months rose from 9.7 percent in the previous survey period to 10.15 percent in this survey period, and the CPI expectation after 24 months rose from 8.58 percent and 8.86 percent..

DOLLAR FORECAST

During the same period, the year-end exchange rate (dollar/lira) expectation rose from 7.34 to 7.60 and the 12-month post-exchange rate expectation rose from 7.68 pounds to 7.94 pounds.