Central Bank forecasts year-end inflation as 5.1 %
Posted by meb at January 30th, 2007
The Governor of Central Bank of Turkey, Durmus Yilmaz, forecast the year-end inflation figure as 5.1 percent, and the inflation figure in 2008 as 3.4 percent.
Holding a press conference in capital Ankara yesterday, Yılmaz stated that the year-end inflation will be between 3.6 and 6.6 percent this year, and between 1.6 and 5.2 percent next year.
“Firm monetary policies should be maintained for some time more in order to keep medium-term inflation target of 4 percent,” he noted.
The governor underlined that weather conditions, aridity in particular, would pose a risk on inflation, in the upcoming period. He added a contraction in foreign trade deficit would be supported by a surging demand abroad, and a slowdown in domestic demand.
The governor warned the government to make wage rises for public workers considering current inflation levels. He stated that the contribution of fiscal policies to declining inflation would remain limited this year, compared to previous years.
source: EkoTürk News Agency / Ankara
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