Central Bank sets year-end inflation forecast at 6.9 percent

Istanbul, July 30 () - The Governor of Central Bank of Turkey, Erdem Başçı, has announced their year-end inflation forecast as 6.9 percent.

Having made a statement at the meeting presenting the 3rd Inflation Report, Başçı forecasted the 2015 year-end inflation as “is expected to be between 6.0 percent and 7.8 percent, with a mid-point of 6.9 percent, at end-2015."

Başçı had previously announced the 2nd Inflation Report of this year on April 30, marking the 2015 inflation forecast as 6.8 percent level rising from 5.5 percent. The 2016 inflation forecast had rose from 5.0 percent to 5.5 percent, on the other hand, according to this previous report.

Başçı also asserted that the delayed reflection of the forex developments also puts back the recovery in inflation outlook. “The inflation will tend to fall until September and then will rise in September due to base effect, closing the year with 6.9 percent with a fluctuating course” added Başçı.

According to Başçı’s statement, the Central Bank has also decided to maintain the existing frame of the monetary policy, but could review this frame in case of change of conditions.