Central Bank expects sharp inflation drop

Central Bank expects sharp inflation drop

ANKARA - Anatolia News Agency
Inflation will peak in April before falling rapidly, Central Bank Gov. Erdem Başçı said in a presentation to the Cabinet yesterday.

“The inflation rate is expected to reach its peak in April, however we are expecting an important drop in May. Rates will keep falling faster toward the end of the year,” he said.

The current account deficit also hit its highest in October 2011, Başçı also said during the briefing.

Bank projects recovery in current account deficit

The recovery in the current account gap will continue and the bank is optimistic for the 2012 growth pace, he said.

Başçı also highlighted that he preferred changing the posture of monetary policy rather than revising the inflation rate predictions. Monetary policy decisions were set to help the inflation rate reach the “5 percent target” by mid 2013.

According to the laws, every year in April and October the governor gives a briefing about monetary policy that has been implemented or will be implemented regarding banking activitie