Turkey's CB raises inflation prediction

Turkey's Central Bank has raised its predictions for year end inflation, with its latest survey of expectations tipping price rises to top eight percent in 2008.

Turkey's CB raises inflation prediction
Turkey's Central Bank has raised its predictions for year end inflation, with its latest survey of expectations tipping price rises to top eight percent in 2008, Turkish NTV reported.

The latest survey, released after markets closed late Wednesday, showed that the Central Bank had raised its predictions for inflation from 7.27 percent to 8.03 percent since its last report two weeks ago.

The twice monthly study, which surveys economists and experts in the financial sector, also predicted a fall in expectations for Turkey's current account deficit, which is tipped to come in at $42.58 billion, down from the $43.16 billion estimated in the previous survey.

Expectations for Turkey's end-2008 growth rate also fell, with the economy expected to expand by 4.2 percent instead of the 4.5 percent estimated in the end of March survey.

The Central Bank's study was slightly more optimistic than the results of a report by the International Monetary Fund, also released late Wednesday.

According to IMF predictions, Turkey's gross domestic product growth will be 4.0 percent in 2008, and 4.3 percent in 2009.

However, the IMF's "World Economic Outlook" report predicted year end inflation to come in at 7.5 percent in 2008, below that suggested by the Central Bank's study, and 4.5 percent in 2009.

Last Mod: 10 Nisan 2008, 17:03
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