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Central bank governor expects Turkish inflation to gradually approach target

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Turkey’s inflation is expected gradually to get nearer to the central bank’s targets, Central Bank Governor Murat Çetinkaya said on Friday, after consumer prices last month surged to a 15-year high of 25.2 percent, Reuters reported.

A Reuters poll showed on Thursday that annual inflation is forecast to fall to 22.6 percent in November. Economists said inflation was still expected to remain around 20 percent until the middle of next year, well above the central bank’s target of 5 percent.

According to the text of a presentation published on the bank’s website, Çetinkaya also said the bank would closely monitor factors that impact inflation and added that monetary policy tools will be used effectively.

The high inflation was triggered by a currency crisis with the Turkish lira has lost around 35 percent of its value against the US dollar since the beginning of this year.

The lira stood at 5.21 to the dollar as the markets closed on Friday.

Turkey announced an “all-out war” on inflation, with the government putting pressure on producers to keep prices down.

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