Turkey’s central bank raises 2020 inflation forecast to 8.9 pct

The Turkish central bank raised its year-end inflation forecast to 8.9 percent for 2020 from 7.4 percent in its previous inflation report, the Turkish Central Bank Governor Murat Uysal said Wednesday.

“Our current monetary policy is in line with the inflation outlook,” Uysal said in his briefing on the third annual inflation report of 2020.

This increase is due to an upward revision in oil prices and food inflation projections, he explained.

The central bank forecasts that the inflation will fall to 6.2 percent at the end of 2021, compared with a forecast of 5.4 percent in the previous report, Uysal told reporters.

The forecasts are based on the assumption that there would not be a second wave of COVID-19 outbreak, and the world economy will start recovering, according to the Turkish official.

“On our side, developments are positive. The normalization process (in coronavirus restrictions) has started. We expect this to continue. We have made all our assumptions in this framework,” the central bank governor said.