Turkish Central Bank forecasts December inflation at 7%

Turkish Central Bank chief Erdem Basci said Tuesday that the inflation in December was estimated to be at 7%, adding TCB has strong and effective tools to deal with inflation and exchange rate volatility. Presenting the bank’s 2014 Monetary and Exchange Rate Policy in Ankara, Basci said the bank would not allow sharp moves and strong volatility in the market. Basci said he expected a stronger year in terms of stability and predictability, but did not avoid speaking of increasing global concerns and volatilities. Big uncertainties will mark the global economy in the new year, Basci said, noting that Turkey's monetary policy will maintain flexibility while increasing predictability. “We have strong predictability in Turkish Lira liquidity and we would like to increase our predictability in US dollar liquidity as well ” Basci said. "This will be a year in which policy flexibility will constitute the bank’s objective and the policy predictability will increase rapidly”, Basci added. The Central Bank chief said the bank would also track financial stability in 2014. "We will not only focus on price stability but also go on with ensuring financial stability." Noting the inflation rate may exceed the expected percentage in December, Basci reiterated that the bank's inflation projection for the next three years would remain at 5%. Basci also said the bank would sell foreign exchange worth $ 450 million every day to stabilize the currency until the end of the year.