Inflation estimate falls to 8.45 pct

Bloomberg

Inflation is expected to slow to 7.26 percent in 24 months compared with a previous forecast of 7.55 percent, the Bank said on its Web site on Monday. Year-end inflation was expected at 11.04 percent, it said.

The government target for inflation at the end of 2009 is 7.5 percent.Turkish economic growth will slow to 2 percent this year and 1.2 percent next year, the survey said. The estimates fell from 2.3 percent and 1.7 percent respectively, it said.

The Central Bank on Dec. 18 cut its overnight borrowing rate 1.25 points, down to 15 percent, encouraged by falling commodity prices worldwide. Inflation eased to 10.8 percent in November, the slowest pace in five months.