CBRT Governor Kavcioglu raises end-2022 inflation view to 65.2%

The Central Bank of the Republic of Turkiye (CBRT) Governor Sahap Kavcioglu said on Thursday, the central bank raised its year-end annual inflation forecast to 65.2% from 60.4% three months ago.

Key quotes

“Forex stability needs to be in line with the disinflation process and that a fall in inflation would be ensured through supporting production.”

“Does not think central bank is very successful in lowering inflation.”

“Recent decisions will help us succeed in lowering inflation.”

“Current developments show inflation will fall.”

Turkish annualized inflation surged to over two-decade highs of 83.45% in September after the central bank surprised markets by cutting rates twice in two months.

Market reaction

USD/TRY is keeping its range around 18.60 on the above comments, trading neutral on the day.