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Turkey’s central bank trims 2019 inflation forecast from 15.2 pct to 14.6 pct

Turkey's Central Bank headquarters is seen in Ankara.

Turkey’s central bank cut its 2019 inflation forecast to 14.6 percent from a previous 15.2 percent, bank governor Murat Çetinkaya said on Wednesday, Reuters reported.

Speaking at the bank’s quarterly inflation briefing, Çetinkaya also said the bank was reducing its 2020 year-end inflation forecast to 8.2 percent from 9.3 percent in the previous report.

The governor of the central bank said Turkey’s tight monetary stance, falling oil prices and tax reductions were the main drivers behind a fall in inflation.

Core goods and energy items were also key drivers in the fall in annual inflation, he added.

He said recently released data show that the rebalancing trend in Turkey’s economy has become more noticeable.

Turkey had experienced a currency crisis last summer, with the free fall of the Turkish lira against the US dollar, leading to high inflation and interest rate hikes.

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