Mahfi Eğilmez calls on Central Bank to announce year-end inflation expectations

Economist Mahfi Eğilmez evaluated recent economic developments during a program he attended on CNBC-e.

Eğilmez emphasized that the Central Bank should announce not only its 12-month inflation forecast but also its year-end inflation expectation. He stated that this step would be more beneficial for economic actors.

While evaluating the impact of the ceasefire between Israel and Iran on the markets, Eğilmez noted that such events had led to greater volatility in the past, but that the market is now more accustomed to such developments. He said that the rise in oil prices affects Turkey, resulting in increases in fuel prices.

Touching upon the Central Bank's interest rate policies, Eğilmez stated that the tensions experienced in June have reduced the likelihood of an interest rate cut.

He expressed that June inflation is expected to be around 2.5 percent, and in this case, it could become difficult for the Central Bank to proceed with an interest rate cut.

VIEWS ON THE FED'S INTEREST RATE POLICY

Addressing the economic situation in the US, Eğilmez said that core inflation is expected to rise and therefore the Fed is not expected to cut interest rates. Stating that the US economy's growth rate is above 2 percent and the unemployment rate is hovering around 4 percent, he expressed that there is no danger of recession and therefore there is no reason for the Fed to cut interest rates.