Central Bank Reveals Market Expectations on Inflation and Dollar

The Central Bank of the Republic of Turkey has released the results of its August Market Participants Survey, conducted with 68 participants from the real and financial sectors, as well as professionals. According to the survey, the year-end increase expectation in the Consumer Price Index (CPI) rose from 29.21% to 29.43%. The survey also showed changes in expectations for dollar/TL, current account deficit, and policy interest rates.The participants' inflation expectations varied across different maturities. The 12-month ahead increase expectation in the CPI decreased from 23.95% to 23.69%, while the 24-month ahead expectation rose from 17.83% to 18.03%. The survey also showed an upward change in the participants' dollar/TL expectations.