Turkish Central Bank raises 2018 inflation forecast
ANKARA - Anadolu Agency
Speaking at a news conference in the capital Ankara ahead of the release of the bank’s quarterly inflation report, Central Bank Governor Murat Çetinkaya said inflation would stabilize at around five percent in the medium term.
The rise in the forecast has been driven by upward revision in the output gap along lira-denominated import price projections, he said.
“The upward revision in the 2019 year-end inflation forecasts by a total of 0.5 points, relative to October Inflation Report, is driven by upward revision in assumptions for TL-denominated import prices,” he said.
The bank also increased its oil price forecast to $56 per barrel from $55 in the previous report, and to $66 for 2019.
Steps to be taken toward external deficit and savings deficit, financial deepening, productivity and market competition will support achieving lasting price stability and contribute to social welfare, he added.