Turkish central bank survey: year-end inflation forecast climbs to 26%
Turkey's central bank published its May Market Participants Survey. Respondents lifted their end-of-year inflation forecast to 26.1%, up from the previous month, while expectations for the policy rate held near 35%.
The Central Bank of the Republic of Turkey released its May Market Participants Survey. Expected annual consumer price inflation 12 months ahead came in at 21.4%, while the 24-month outlook stood at 14.8%. The year-end forecast for 2026 rose to 26.1%.
Respondents see the dollar-lira exchange rate at 47.80 at year-end and project GDP growth at 3.4%. The survey median for the policy rate in 12 months' time is 27%, suggesting expectations of gradual easing.
The data were published shortly after Governor Karahan revised the central bank's year-end inflation forecast range to 24-29%. Markets currently expect the bank to hold the policy rate steady at its June meeting.
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