Inflation expectations rise in Türkiye
According to the Central Bank of the Republic of Türkiye's (CBRT) October Survey of Market Participants, the year-end inflation expectation increased from 29.61% to 29.63%.
The inflation forecast for the next 12 months also rose from 23.70% to 23.89%, while the 24-month inflation expectation declined from 18.32% to 17.94%. Survey participants expected the policy interest rate to stand at 36% following the October Monetary Policy Committee meeting.
The year-end USD/TRY exchange rate forecast edged down from TRY 51.57 to TRY 51.55, while the 12-month exchange rate expectation increased from TRY 58.60 to TRY 59.26. Türkiye's economic growth forecast for 2026 was revised down from 3% to 2.9%, while the 2027 growth projection remained unchanged at 3.9%. The figures indicate a slight increase in short-term inflation expectations alongside an improvement in longer-term expectations.
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