Finance Minister Şimşek Expects Inflation Expectations to Align with CBRT Forecasts as Rates Fall

Treasury and Finance Minister Mehmet Şimşek stated that Türkiye’s inflation expectations are on a downward trajectory and are likely to converge further with the Central Bank of the Republic of Türkiye’s (CBRT) forecasts as actual inflation continues to decline.

In a post on his X account, Şimşek emphasized that both 12-month and 24-month market inflation expectations have been falling. He said:

“We anticipate that expectations, which are sensitive to actual developments, will move closer to the Central Bank’s forecasts as inflation decreases. This, in turn, will provide additional support to the disinflation process by reducing rigidities.”

The remarks underscore the government’s view that aligning market expectations with official inflation targets will play a key role in sustaining Türkiye’s disinflation trend in the coming quarters.