Inflation expectations up by 11.5 points

The year-end inflation expectation rose to 57.92%, according to the results of the Market Participants Survey for May by Central Bank. The figure was 46.44% in the previous month’s survey. The CPI expectation for 24 months later, also increased from 17.68% to 19.54%. 

The participants’ current year-end USD/TRY expectation also rose from 16.85 in the previous survey period to 17.57 in the latest survey. The USD/TRY expectation after 12 months was realized as 17.84 and 18.47, respectively, during the same survey periods.

The 0.1-point increase in growth expectation

While the GDP growth expectation of the participants for 2022 was 3.2% in the previous survey period, it was announced as 3.3% in this survey period. The GDP growth expectation for 2023 did not change compared to the previous survey period and remained at the 4% level. 

The current month-end overnight interest rate expectations in the BIST Repo and Reverse-Repo Market did not change and remained at 14.00%. The CBRT one-week repo rate expectation for the end of the current month also remained unchanged at 14.00%. 

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