Turkiye's inflation projected to drop to 29.66% by 2025 end: CBRT

The projection is down from 29.86 per cent expectation in June and 30.35 per cent forecast in May.

Inflation dipped to 35.05 per cent in June.

The country maintained its year-end mid-point estimate for the consumer price index (CPI) at 24 per cent in May, with an upper band of 29 per cent. Turkish officials continue to emphasise that inflation will remain within this forecast band, according to domestic media reports.

Morgan Stanley expects a 250-basis point cut this month, followed by three additional cuts of the same size to bring the policy rate to 36 per cent by year-end.

On the currency front, respondents in the CBRT Survey of Market Participants for June revised their year-end dollar/lira forecast slightly upward to 43.72, from 43.57. The 12-month forecast for the exchange rate also rose from 47.04 to 47.70.

Gross domestic product (GDP) growth forecasts for 2025 and 2026, meanwhile, remained unchanged at 2.9 per cent and 3.7 per cent respectively.

ALCHEMPro News Desk (DS)