Turkish cenbank governor says inflation may exceed expectations

Turkish Central Bank Governor Sahap Kavcioglu said on Friday inflation could rise higher than expected this month and next, but added monthly moves do not affect its year-end forecast, according to two sources participating in an investors meeting.

Kavcioglu said the bank was sticking to the inflation path outlined in its April inflation report, in which it forecast that inflation would fall to 12.2 per cent by year-end, the sources said.

Kavcioglu also said the bank could reach a swap deal with other central banks and was close to a deal with some, the sources said.