site.btaTurkiye's Central Bank Raises Inflation Forecast this Year

Turkiye's central bank has raised by two points its inflation forecast for 2024, with the indicator expected to reach 38%, according to a Turkish central bank report presented on Thursday at a press conference by the bank's governor, Fatih Karahan.

Consumer prices in Turkiye rose in April by 69.8% on an annual basis.

"In the last three months of this year, we see that inflation is higher than our expectations. Consumer inflation at the end of April was 69.8%, 0.9 points above the forecast range. We are closely monitoring price behaviour and inflation expectations. We are committed to maintaining tight monetary policy until inflation falls to levels consistent with our objectives. We will not allow a sustained deterioration in the inflation outlook," he was quoted as saying by TRT Haber.

Responding to a journalist's question whether the central bank intends to put into circulation a new issue of 500-lira notes, Karahan said that this would happen if conditions required. Currently, the largest banknote is 200 Turkish liras.