Turkey's Central Bank announced year-end inflation and dollar exchange rate forecasts

The Central Bank published the "Market Participants' Survey for October 2023" with the participation of 70 representatives of the real sector, financial sector and other professionals. According to it, the year-end inflation forecast was 68.01% and the dollar exchange rate forecast was 30.05 liras. Expectations for the 12-month US dollar exchange rate increased from 37.26 liras to 38.64 liras. The 12-month CPI (consumer inflation index) expectation increased from 44.94% to 45.28%.

The overnight interest rate forecast for the BIST repo and reverse repo market at the end of the current month was 29.26% in the previous and 33.22% in the current survey period. The expected interest rate of the CBN's one-week repo auction at the end of the current month was 30% in the previous period and 33.68% in the current period. The GDP growth forecast for 2023 was 3.9% and actually amounted to 4.1%. The projected GDP growth in 2024 decreased from 3.8% to 3.4%.