The Central Bank of the Republic of Turkey has announced its year-end dollar and inflation forecasts: What are the market expectations?

The June Survey of Market Participants, conducted by the Central Bank of the Republic of Turkey (TCMB) with 68 participants from the real and financial sectors, has been published.

Accordingly, the expectation for the June CPI increase, which was 2.56 percent last month, fell to 2.52 percent in this survey period. The expectation for the current year-end CPI increase declined from 43.64 percent to 43.52 percent.

The expectation for the CPI increase for 12 months ahead fell from 33.21 percent to 31.79 percent, and for 24 months ahead from 21.33 percent to 20.33 percent.

Participants' year-end dollar/TL expectation fell from 38.7771 to 37.7463, while the 12-month dollar/TL expectation dropped from 41.7997 to 41.4115.

The year-end current account deficit expectation, which was 30.5 billion dollars in the previous survey period, fell to 29 billion dollars in this period. The current account deficit expectation for next year also declined to 28.4 billion dollars.

POLICY RATE EXPECTATION FOR THE END OF THE CURRENT MONTH IS 50 PERCENT

The Gross Domestic Product (GDP) growth expectation for the current year remained stable at 3.3 percent, and at 3.7 percent for next year.

The expectation for the TCMB's policy rate for the current month and 3 months ahead remained at 50 percent.

The policy rate expectation for 12 months ahead also fell from 37.11 percent to 35.90 percent.

News Source: AA