Turkish Central Bank updates inflation projections for upcoming years

Turkish Central Bank updates inflation projections for upcoming years
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Central Bank Governor Hafize Gaye Erkan announced updates to the inflation forecasts, setting the year-end inflation target for 2023 at 65% and the expectation of inflation peaking in May 2024.

Hafize Gaye Erkan, the President of the Central Bank of the Republic of Turkey (CBRT), conducted a press conference to unveil the latest adjustments to the central bank's inflation projections in the fourth-quarter inflation report. The CBRT's previous year-end inflation forecast of 58% has been revised, reflecting the ongoing economic challenges facing Turkey.

"Our updated midpoint inflation projections for the year 2023 stand at 65%, a noticeable increase from our previous estimate. For 2024, we project an inflation rate of 36%, while for 2025, we anticipate an inflation rate of 14%," Erkan said.

Erkan also emphasized that the CBRT is steadfastly dedicated to combating high and volatile inflation, but the path ahead is anticipated to be arduous.

"Controlling high and volatile inflation is a long-term challenge that requires determination and patience," she said.

Erkan highlighted, "We expect inflation to reach its peak in May 2024. Following that, we anticipate the commencement of the disinflation process, which is a positive sign for our economic outlook."