Central Bank keeps inflation forecast unchanged

ANKARA-Anadolu Agency

Turkey's Central Bank on Jan. 30 announced its inflation forecasts for 2020-21 remain unchanged.

The bank projected Turkey's year-end inflation to stand at 8.2 percent at by the end of 2020 and 5.4 percent at end-2021, the governor Murat Uysal said during a meeting on inflation report 2020-I.

It is also expected to stabilize around 5 percent in the medium term, he added.

In its previous report on inflation the bank predicted same rates for the inflation in Turkey for 2020-21.

The latest report said Turkey's risk premium declined significantly thanks to improvement in macroeconomic indicators and global developments.

"Wide-spread improvement in inflation expectations and increased consensus among individual expectations indicate that uncertainties regarding the medium-term inflation outlook have decreased to a large extent," it added.

"Due to improvement in inflation expectations and decline in the country risk premium, long-term interest rates fall, domestic demand strengthens, investment tendency and labor markets display signs of recovery," said the report.