The Central Bank of the Republic of Türkiye (CBRT) reported on Friday that market participants have significantly raised their inflation and exchange rate expectations for 2025, signaling growing concerns about economic pressures, according to the April Market Participants Survey.

The survey showed year-end inflation forecasts climbing to 29.98%, up from 28.04% in the previous projection. Similarly, the Consumer Price Index (CPI) outlook for the next 12 months rose to 25.56%, from 24.55%, reflecting heightened anticipation of sustained price increases.

Exchange rate expectations also saw an upward revision, with participants now projecting the USD/TL rate to hit 43.60 by year-end, compared to the earlier estimate of 42.79 in March. The shift points to increased worries about the Turkish lira’s stability amid a volatile economic landscape.

On monetary policy, the survey indicated that markets expect the CBRT’s policy rate to remain unchanged in April, with a forecast of 39.24% for the rate three months out.

The revised figures highlight mounting challenges for Tuürkiye’s economy, as inflation and currency depreciation concerns continue to shape market sentiment. (ILKHA)