ISTANBUL: The Turkish Central Bank held its mid-point inflation forecast for end-2021 steady at 9.4%, Governor Naci Agbal said on Thursday, despite higher market expectations in the range of 11% to 12%.

In a briefing on its latest quarterly inflation report, Agbal said the bank forecast that inflation will fall to 7% at the end of 2022. The official target is between 3% and 7% on an annual basis.

The lira firmed after the forecast was maintained, suggesting the bank could maintain a tight monetary policy stance for longer than expected. Since November it has raised the key policy rate to 17% from 10.25% under new chief Agbal.