Expectations for Turkey's end-2018 inflation rate rose from 24.22% in October to 24.45% in November, the central bank’s regular survey of businesses and analysts showed on November 15.
Survey participants also expected the central bank’s weighted average cost of funding (WACF) to increase from the current 24% to 24.12% in the three months ahead. The central bank has been funding local lenders at its main policy rate (one-week repo rate) of 24% since September 14.
Turkey’s annual consumer price inflation rate moved up to 25.24% in October from 24.52% in September, the Turkish Statistical Institute (TUIK) announced on November 5.
Respondents to the survey also forecast that Turkey’s GDP growth would be 3.1% this year; in October the expectation was for 3.2%.
Also according to the central bank survey, Turkey’s end-2018 current account deficit expectations declined from $40.7bn in October to $36.7bn in November amid the economic rebalancing brought about by Turkey's big fall in consumer demand sparked by the country's currency crisis and other financial turmoil. The extent of the rebalancing is such that some analysts have used descriptions such as “rebalancing by anorexia” to portray it.