Inflation and exchange rate forecasts rise
According to the results of the Central Bank’s regular survey of 66 sector representatives and professionals, growth expectations have fallen while expectations on end-2018 nflation and the USD/TRY exchange rate have risen. Expectations for Turkey’s end-2018
CPI nflation rate rose to 12.28 percent in June from 11.07 percent in May. Survey respondents also said that they expected the USD/TRY rate to reach 4.58 at the end of this year, a significant weakening from the 4.43 anticipated in the May survey. Respondents also forecast that GDP growth will be 4.2 percent this
year, lower than the 4.6 percent foreseen in May. According to the Central Bank survey, Turkey’s end-2018 current account deficit expectations remained constant at $53.5 billion from April to May.