Turkish Central Bank raises its forecast for the inflation rate to 36 percent

Turkish Central Bank Governor Hafizah Ghaya Arkan said on Thursday that the bank raised its forecast for the inflation rate by the end of the year to 65 percent from 58 percent, and also raised its forecast for inflation by the end of 2024 to 36 percent from 33 percent.

Speaking during a press conference in Ankara to announce the bank’s quarterly inflation report, Arkan stated that the bank’s expectation for annual consumer price inflation by the end of 2025 has become 14 percent, up from 15 percent.

Inflation in Turkey reached 61.5 percent in September and is expected to continue rising until the second quarter of next year, despite the central bank raising interest rates by 2,650 basis points to 35 percent, reversing a previous policy of not raising them since Erkan took office in June.