Impact of volatility in financial markets on expectations likely to be short-term and limited, says Mehmet Simsek
Türkiye's Treasury and finance minister highlighted improving inflation expectations among market participants and the real sector, underscoring the positive impact of government policies and coordination among institutions in curbing inflation.
The Turkish Central Bank on Wednesday released its March 2025 data on sectoral inflation expectations, revealing a mixed outlook across market participants, the real sector, and households.
"Inflation expectations of market participants and the real sector are improving. 12-month ahead inflation expectations fell to 24.6% among market participants and to 41.1% in the real sector. Household expectations increased slightly." Mehmet Simsek wrote on X.
Market participants' inflation expectations dropped 0.7 percentage points to 24.6%, while the real sector, particularly manufacturing industry firms, saw an 0.8 percentage point decline to 41.1%.
In contrast, household inflation expectations rose slightly by 0.1 percentage points to 59.3%, remaining significantly higher than other sectors.
While acknowledging that the data does not fully account for recent financial market volatility, Simsek expressed confidence in the government's strategy.
"We expect the impact of volatility in financial markets on expectations to be short-term and limited. The steps taken with the strong coordination of all our institutions and the tightening financial conditions will be disinflationary," he said.
Simsek reaffirmed the government's commitment to achieving price stability, promising that the administration would continue to implement its program "with determination."
