Turkey central bank head expects inflation to slow – ZAWYA

Turkey central bank head expects inflation to slow – ZAWYA

Turkey central bank head expects inflation to slow The bank now forecasts 8.9% year-end inflation, up from 7.4% in its previous quarterly report    ISTANBUL - Turkey's central bank, under pressure from rising prices and a volatile drop in the lira, ratcheted up inflation forecasts on Wednesday, but its chief remained optimistic that disinflation would soon return.Governor Murat Uysal also downplayed concerns about the bank's depleted FX reserves, which he said would naturally fluctuate during a pandemic. He did not address a drop of as much as 1.5% in the currency this week that could put more pressure on that buffer. The bank now forecasts 8.9% year-end inflation, up from 7.4% in its previous quarterly report, assuming there is no second coronavirus wave. It expects inflation to dip to 6.2% by the end of 2021, up from a previous forecast of 5.4%.Governor Murat Uysal also downplayed concerns about the bank's depleted FX reserves, which he said would naturally fluctuate during a pandemic. He did not address a drop of as much as 1.5% in the currency this week that could put more pressure on that buffer. ISTANBUL - Turkey's central bank, under pressure from rising prices and a volatile drop in the