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TURKEY: Inflation Estimates Fall in Latest Central Bank Survey

TURKEY
  • Turkey's inflation estimate in the next 12 months fell to 30.02% in July from 31.79% in June, according to the CBRT’s survey of market participants. The year-end inflation estimate fell to 42.95% (from 43.52%) while the estimate for the next 24 months fell to 19.32% (from 20.33%). Meanwhile, the full-year GDP growth estimate edged higher to 3.4% from 3.3% in June.
  • The monthly growth limit for FX loans has been lowered from 2% to 1.5% and monthly growth limit for TRY loans has been kept unchanged at 2%, the central bank said in statement. This marks the latest macroprudential measure in a series designed to supplement the CBRT’s rate pauses and to improve the transmission of monetary policy.
  • The CBRT rate decision is tomorrow where an unchanged decision is unanimously expected. Our full preview will be released later today.

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