The biggest contribution to the sharp rise in the 2023 forecast came from forecasts deviations and a change in forecasting approach.
"The central bank did not only provide an inflation forecast that is in line with economists predictions but... the emphasis in the report very much matched those of the market.
We had not seen this from the central bank in many years.
CENTRAL BANK INDEPENDENCEEconomists expect the policy rate to rise further to 25% by year-end, still leaving real rates negative.
"Defining interest rate hikes as sufficient or insufficient can only be done after inspecting the intricacies of this holistic approach," she said.
Persons:
Hafize Gaye Erkan, Erkan, Nilufer Sezgin, Sahap Kavcioglu, Erdogan, Ali Kucukgocmen, Daren Butler, Andrew Heavens, Bernadette Baum
Organizations:
Wall Street, CENTRAL, Ece Toksabay, Thomson
Locations:
ANKARA, Ankara