Turkish 2020 inflation seen slowing to 10 percent in central bank survey

Turkish consumer price inflation was expected to slow to 10.01 percent by the end of the year, according to a January survey of finance industry professionals and business leaders published by the central bank on Friday.

Expectations for Turkey’s CPI dropped from 10.07 percent in the same survey held in December.

Inflation in 24 months was seen at 8.51 percent compared with a previous estimate of 8.94 percent.

Turkey’s inflation accelerated to 11.8 percent in December from 10.6 percent a month earlier. The government says it expects inflation and interest rates to decline to single digits this year and then remain at that level.

Economic growth in Turkey was seen at 3.4 percent this year, higher than a prediction of 3.2 percent in the same survey held in December. Growth next year was expected at 3.7 percent.   

The weighted average cost of central band funding was seen at 11.31 percent at the end of January, 10.79 percent in three months and 9.77 percent by the year-end. The central bank currently lends at its benchmark rate of 12 percent.

The lira was expected to trade at 5.9503 per dollar at the end of January and at 6.4079 at the year-end.

The current account deficit for 2020 was seen at $13 billion.