Turkey Admits to 3 More Years of Missing Inflation Target
- Governor Cetinkaya predicts 6.7% inflation by end of 2020
- Investors question if bank is serious about meeting targets
Murat Cetinkaya speaks in Istanbul on July 31.
Photographer: Arif Akdogan/BloombergThis article is for subscribers only.
Turkey’s central bank on Tuesday acknowledged it won’t meet its 5 percent inflation target for three more years, disappointing investors seeking signs that monetary policy would tighten.
Although Governor Murat Cetinkaya pledged to raise borrowing costs when needed, his prediction of 6.7 percent inflation by the end of 2020 was seen as a dovish signal by investors who gathered in Ankara for the bank’s quarterly inflation report. He expects prices to rise 13.4 percent through this year and 9.3 percent through 2019.