ANKARA (Reuters) – Turkey’s central bank sharply raised its 2018 inflation forecast to 13.4 percent from 8.4 percent previously, governor Murat Cetinkaya said on Tuesday.
Speaking at the bank’s quarterly inflation briefing, Cetinkaya also said the bank was lifting its 2019 year-end inflation forecast to 9.3 percent from the 6.5 percent announced in the previous report in April.
The revisions follow a leap in consumer price inflation to a 14-year high of 15.39 percent in June, which has helped drive the lira beyond 4.9 to the dollar in recent weeks, despite interest rate hikes of 500 basis points since April.
At 0810 GMT the lira
Data from the second quarter suggested economic activity was decelerating and had started rebalancing, Cetinkaya said.
However, inflation will show a limited increase in the third quarter, he said, adding that a tight monetary policy stance would be maintained for a long time.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Source: Investing.com