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MNI INTERVIEW: Turkish Cenbank To Miss Mid-Term Price Targets

(MNI) LONDON

Leading Turkish economist Meryem Goekten talks to MNI about the CBRT and inflation.

Failure to address the causes of persistent high inflation means the Central Bank of Turkey's medium-term price targets look out of reach, economist Meryem Goekten told MNI, citing high corporate borrowing and lack of public trust.

Inflation is likely to come in at 40-42% this year, above the latest target of 38% though within the central bank’s tolerance band, said Meryem Goekten of the Vienna Institute for International Economic Studies, adding that this implies the CBRT expects economic growth of only about 2.5%, versus the government’s 4% objective.

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Failure to address the causes of persistent high inflation means the Central Bank of Turkey's medium-term price targets look out of reach, economist Meryem Goekten told MNI, citing high corporate borrowing and lack of public trust.

Inflation is likely to come in at 40-42% this year, above the latest target of 38% though within the central bank’s tolerance band, said Meryem Goekten of the Vienna Institute for International Economic Studies, adding that this implies the CBRT expects economic growth of only about 2.5%, versus the government’s 4% objective.

Keep reading...Show less