Key insights
- Turkey's central bank signals rising inflation uncertainty due to commodity price volatility and supply constraints. Rising energy and food prices are expected to drive inflation. The war's negative impact is expected to weigh on the current-account deficit. This may have a slight negative impact on US equities due to global economic uncertainty.
Investing.com - Turkey’s central bank reported a substantial increase in uncertainty over the inflation outlook due to price volatility and supply constraints in commodities, according to a summary of the Monetary Policy Committee meeting held on April 22.
The bank stated it is closely monitoring how developments and domestic energy prices affect the inflation outlook through the cost channel and economic activity.
Leading indicators point to an increase in the underlying trend of inflation in April, with prices expected to be driven by energy and food, the central bank said.
The negative impact of the war is expected to weigh on the current-account deficit in April, with the extent of the impact varying depending on the duration and scale of developments, according to the summary.
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