Unicredit Shared Its Inflation Forecast For Turkey

Unicredit shared its inflation forecast for Turkey. The institution announced its expectation for the month of March and the end of the year.

According to Unicredit's estimates, while Turkey expects headline inflation of 16.3 percent in March, it has been announced that the core inflation will increase to 16.9 percent. Estimating that the inflation rate, which was 15.6 percent in February, will increase to 16.3 percent in March, Unicredit also stated that they expect a 1.4 percent monthly increase in food prices. Stating that the inflation will decrease to 15 percent at the end of 2021, Unicredit stated that the Central Bank of the Republic of Turkey (CBRT) may lower the policy rate to 15 percent earlier than expected. Unicredit stated that food inflation will decline compared to February and that they think food inflation will come as 17.8 percent in March.

Goldman Sachs Also Shared Forecasts For Turkey

Goldman Sachs also shared its inflation forecast for Turkey in a report published on March 30. Expecting inflation to rise to 18 percent in April, the bank stated that inflation could fall to 15 percent at the end of the year. Stating that the CBRT does not have much room for interest rate cuts until the fourth quarter of 2021, Goldman Sachs also emphasized that there is still the risk of increasing interest rates in the first half of 2021.