Turkish central bank revises inflation forecast from 21% to 24%

He stressed the monetary authority is ‘not on autopilot mode’ after two consecutive interest rate cuts.

The governor told a press conference that the extent or number of interest rate cuts would depend on the inflation outlook. "If there is a deterioration in the inflation outlook, we will consider all options," he was quoted as sayng by domestic media reports.

The revision was driven by factors that are relatively "beyond the control of monetary policy," said the governor.

The country’s annual inflation, which peaked above 75 per cent in May last year, dropped to 42.12 per cent in January this year, official data showed. Monthly inflation climbed more than expected to 5.03 per cent.

Karahan reiterated CBRT’s commitment to its disinflation strategy, highlighting measures like maintaining tight financial conditions, encouraging moderation in domestic demand and fostering the real appreciation of the Turkish lira.

Fibre2Fashion News Desk (DS)