Central Bank expects positive current balance in 2nd half
ANKARA- Anadolu Agency
The recovery in exports will come as virus restrictions are relaxed, and low commodity prices will support the current account balance, the bank said after a meeting with both Turkish and foreign investors.
In a presentation on the macroeconomic outlook and monetary policy in Turkey, the bank said in the second half of the year, amid normalization, demand-side disinflationary effects will grow more evident.
It also said deleveraging in the corporate sector continues.
The bank’s “reserves cover total short-term FX financial debt repayments," it said, adding that it maintains adequate FX liquidity buffers to cover short-term external debt.
On inflation, the bank said it has been showing a downward trend since the monetary tightening, but picked up slightly in June.
Inflation is expected to decline over the medium-term, the presentation said.
It indicated medium-term inflation uncertainty has been reduced and inflation expectations continue to improve.