Central Bank Lowers 2015 İnflation Expectation To 5.5 Pct.

Central Bank of Turkey (CBOT) lowered its 2015 inflation expectation to 5.5 percent in the January inglation report, 0.6 points lower than it was at 6.1 percent in October report, due to sharp decline in the oil prices.

CBOT Governor Erdem Basci said, 2015 inflation expectation was set at 5.5 percent, in a range of 4.1 percent to 6.9 percent, while 2016 inflation was set at 5.0 percent, in a range of 3.2  percent to 6.8 percent and seen to stabilize at 5.0 percent in the medium term, in a meeting organised to launch the bank's January inflation report.

Medium-term forecasts were based on the framework that a cautious approach would be adopted to make the improvement in inflation outlook permanent and the tight monetary policy stance will be maintained by keeping the yield curve flat, the Governor said. "It is assessed that the annual loan growth rate will continue to hover around the recent reasonable levels in 2015, also thanks to the macroprudential measures." - Istanbul