Turkey's 2013 inflation forecast at 5.3 pct

The Central Bank of Turkey Governor Erdem Başçı, speaking in İstanbul on Tuesday, said his bank anticipates the inflation rate to be 5.3 percent on average in 2013.

Turkey's 2013 inflation forecast at 5.3 pct

World Bulletin/News Desk

The Central Bank of Turkey Governor Erdem Başçı, speaking in İstanbul on Tuesday, said his bank anticipates the inflation rate to be 5.3 percent on average in 2013, indicating that he considered no revisions to the forecast.

Turkey's annualized Consumer Price Index (CPI) was at 7.29 percent amid food price rises in March.

Başçı said the bank expects consumer inflation to be between 4.1 and 6.5 percent -- with a midpoint at 5.3 percent -- by the end of this year. “We are expecting the annual inflation to be set at an average of 5 percent from 2014,” he said, adding that the bank monitored factors like global energy prices that would impact inflation closely.

The bank will maintain a “flexible monetary policy” supported by different tools so that they can adjust the fluctuations in global markets, the central bank governor said.

On April 16, the bank cut its key rate by 50 basis points to 5 percent, saying weak global demand and commodity prices should “contain the upward pressures on inflation.”

The yield on Turkish two-year benchmark bonds, meanwhile, slipped for a sixth day to 5.17 percent at the afternoon session of Bourse Istanbul on Tuesday, the lowest level on record. Data find that Turkish bonds have been the best performers across 20 major emerging markets over the past 12 months.

Investors speculate that the central bank will continue to lower interest rates.

Başçı also said Turkey is looking to restore economic growth to above 4 percent in 2013. “In 2013, we expect an economic expansion with a stronger export performance and domestic demand,” he said.

Last Mod: 01 Mayıs 2013, 10:11
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