A Turkish central bank survey revealed that year-end inflation expectation rose to 29.21 per cent in July from 29.14 per cent in June.
Markets do not expect any change to the bank’s 37-per cent policy rate at its next meeting.
Respondents also trimmed their 2026 GDP growth forecast to 3.1 per cent from 3.2 per cent, while leaving the 2027 projection unchanged at 4.1 per cent.
The monthly survey also implied annual consumer inflation will ease to about 31.6 per cent in July from 32.2 per cent in June.
Respondents also trimmed their 2026 gross domestic product (GDP) growth forecast to 3.1 per cent from 3.2 per cent, while leaving the 2027 projection unchanged at 4.1 per cent.
Meanwhile, the 12-month inflation expectation edged up to 24 per cent from 23.8 per cent, while the 24-month outlook eased to 17.8 per cent from 18.3 per cent.
Survey respondents continued to expect CBRT to resume rate cuts as early as September, with the policy rate forecast to average 36.6 per cent after the next meeting, 35.7 per cent after the following meeting and 29.4 per cent over the next 12 months.
The survey left the expected 2026 current account deficit unchanged at $49.2 billion, while raising the 2027 deficit forecast to $43.3 billion from $42.5 billion. The country’s 12-month rolling deficit stood at $37.3 billion in May.
Fibre2Fashion News Desk (DS)
