Turkish Central Bank keeps inflation forecasts constant

Turkey's Central Bank on Thursday kept the country's year-end inflation forecasts unchanged at 9.4% this year and 7% next year.

The inflation rate will fluctuate between 7.3% and 11.5% through end of this year, the bank's governor told a virtual meeting held to release the bank’s first quarterly inflation report in 2021.

Underlining that inflation is projected to stabilize around 5% by 2023, Naci Agbal said tight monetary stance will be resolutely maintained until the target is reached.

"The Monetary Policy Committee will continue to use all instruments to reach the 5% target," Agbal said.

The bank increased its food inflation forecast to 11.5% for 2021, up 1 percentage points from the previous report, Agbal said.

The bank also increased its oil price forecast for 2021 to $54.4 per barrel from $43.8. The forecast for 2022 is $52.2.