The bank also raised its inflation rate expectations to 36 percent by the end of 2024, compared to previous expectations of 33 percent.
The bank’s forecast for annual consumer price inflation by the end of 2025 has become 14 percent, up from 15 percent.
Inflation in Turkey reached 61.5 percent in September, and is expected to continue rising until the second quarter of next year despite the central bank raising interest rates by 2,650 basis points to 35 percent, in a retreat from a previous policy of not raising them since Erkan took office in June.
The Governor of the Turkish Central Bank, Hafiza Ghaya Arkan, said on Thursday that the bank will continue to use all available tools until sustainable progress is achieved in reducing inflation.
She indicated that she expects the inflation rate to begin to decline in the second half of next year.
Speaking during a press conference in Ankara, to announce the bank’s quarterly inflation report, Arkan stated that inflation expectations are still risky, with extreme fluctuations in oil prices due to geopolitical risks.
Arkan added that the rise in inflation in the country is driven by major shocks that occur simultaneously, but their impact on inflation is largely complete.
She said that price stagnation in services will continue to put pressure on inflation, but expectations indicate that it will slow.
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