Turkish Central Bank increases inflation forecast rate to 7.5 for 2016

Mr. Erdem Başçı (Central Bank Governor) announced yesterday that the bank had decided to to increase inflation forecast rate for 2016 from 6.5 to 7.5 percent. This way  Central Bank didn’t revise target at 5 pct and kept its “5 percent target” for the following three years.

In a meeting to launch the first Inflation Report of the Year on Jan. 26 Erdem Başçı also said; “Inflation will likely stabilize around 5 percent as of 2018 after falling to 7.5 percent in 2016 and to 6 percent in 2017”.

The Central Bank  of Turkey incurred several oral interventions from high level political figures – to include former PM of Turkey to start off with – in the past regarding adjustment of interest rates etc. However and to the admiration of related circles Mr. Başçı did not compromise on his principles.

SOURCE: WEB