The Turkish central keeps inflation expectations for the end of the year at 24%

The Turkish central bank kept its forecast for inflation for inflation by the end of the year, emphasizing that the impact of the exchange rate fluctuations in March was limited on prices thanks to the tightening of monetary policy. Bank -Governor Fateh Karahan said during a conference at the headquarters of the Central Bank in Istanbul that annual inflation in consumer prices is expected to lower by the end of the year, which corresponds to previous expectations. These estimates are a reference for policy makers who target a long -term inflation rate at 5%. On the other hand, the markets expect inflation to go to 30.4%at the end of the year, according to the latest estimates. The bank also held its expectations for the inflation rate at the end of 2026. It seems that the rate of slowdown in Türkiye lost its momentum in April; Where the latest data shows a 37.9% increase annually. Continuous price pressure emphasizes the size of the challenges facing policymakers, in light of the existing political risks that keep the markets in a state of tension and increase the complexity of the future path of the central bank. In the inflationary pressure of Turkey, Karahan said that the bank was “ready to do everything” to control inflationary pressure, pointing out that the effect of currency fluctuations in March was temporary, and that the bank would follow the impact of the transfer of these fluctuations to prices. He added: “The risks in the level of inflation are still prone to the upward trend.” The monetary policy committee began lowering interest rates late last year, but it was forced to return after the financial markets were shaken following the arrest of a political opponent of President Recep Tayyip Erdogan in March. Since then, the standard rate has been increased from 42.5%to 46%, while banks have become increasingly dependent on the lending window for a night for the central bank, which is currently 49%, which really means the return of interest rates to the levels that were common about a year ago. The build -up of foreign exchange reserves in Türkiye The policymakers have spent more than $ 50 billion to handle the fluctuations of the lira in the aftermath of the political shock, while the central bank is currently rebuilding its foreign exchange reserves. The state of volatility also urged the authorities to hold the statements to tighten cash. Deputy Governor Jaw that Akgai said at an event in London early this month that interest rates are needed to stay high for a longer period unless individuals and companies are convinced that the central bank is committed to reducing inflation and adjusting the purchase and price patterns accordingly. However, strict monetary policy began to show its effects, especially on the real economy. About half of the Turkish companies listed on the stock exchange announced the record of losses during the first quarter, with the effect of high borrowing costs on profit levels.