Central Bank: Inflation Is Expected To Rise In September

– Central Bank announced it forecasts a “further rise in the inflation” in September, due to exchange rate effects and the volatility in unprocessed food prices, at a presentation for banking and intermediary firm economists.

Having underlined domestic demand contributed moderately to growth while external demand remained weak, Central Bank declared, “The contribution of net exports is expected to pick up in the second half with the support of rising demand from the European Union economies. The improvement in the current account balance will resume with the August figure and will most likely continue throughout 2015.”

The presentation added, “The CBRT maintains a tight policy stance to address the inflationary risks from the exchange rate pass-through and higher inflation expectations. Recently, the CBRT has taken a broad set of measures in the context of the ‘road map during the normalization of global monetary policies’. Overall, CBRT policies are tight for the inflation outlook, stabilizing for FX liquidity, and supportive for financial stability.”

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