Expected Turkish inflation in slight retreat
Inflation expectations for the Turkish markets have slightly retreated, according to a Central Bank survey released Tuesday. The 2011 year-end inflation is expected to be 6.56 percent, the survey showed, slightly down from the 6.61 percent estimated in the previous survey.
The results support the Turkish Central Bank’s policy of cutting interest rates while raising reserve requirements, as they showed that no distortion is observed in inflationary expectations. However, the survey displayed a sharp rise in year-end estimates for current account deficit, as the prediction rose to $48.55 billion. Those surveyed said they expect 5 percent gross domestic product growth for the whole of 2011.
For 2012, respondents said they expected a current account gap of $49.675 billion. For GDP growth in 2012, the respondents predicted an economic growth of 4.8 percent.
The survey is conducted bi-monthly with actors and decision-makers in the financial and corporate sector. The results released Tuesday were from the first survey of February.
Meanwhile, the Central Bank continued to buy dollars from the market. On Tuesday, it bought $50 million from banks at an average price of 1.5783 Turkish Liras per dollar in its daily auction. The Ankara-based bank got $235 million of offers at an average price of 1.5799 liras, it said in a statement.