Turkish Central Bank Keeps Inflation Forecasts Unchanged

The Central Bank of the Republic of Türkiye (CBRT) Governor Şahap Kavcıoğlu announced that the bank has kept its inflation forecasts unchanged at 22.3% for the end of 2023 and 8.8% for the end of 2024.

In the second inflation report briefing of the year, Kavcıoğlu stated that cost pressures on inflation have been largely removed.

The bank also reported a significant decrease in inflation to 43.7% in April, marking a decline of 42 points from its peak of 85.5% in October.

Kavcıoğlu noted that the disinflation process was a result of effective policies that have led to exchange rate stability, improved expectations, and a slowdown in global commodity prices.

He also pointed out that the CBRT had factored in the downward trend in commodity prices while developing their forecasts.

Import prices are expected to decrease in 2023, and global growth has been faster and more balanced than anticipated.

The Turkish economy is expected to outperform expectations in 2023, with national income predicted to increase by 5.6%, machinery-equipment investments by 11.7%, exports by 12.9%, and employment by 6%.