CBT announced the first expectation survey of the month according to which end-year expectations revised up to 6.8% from 6.6%, The Balkans.com reports. This was most probably due to participants' concerns over rising oil prices and exchange rate depreciation. Accordingly, 12-month and 24-month ahead inflation expectations rose to 6.7% (from 6.6%) and 6.3% (from 6.2%) respectively.
Participants expect no change in policy rate (one-week repo rate) at 6.25% in three months but they expect some 50bps rate hike in three months period. 12-month ahead policy rate expectations are also high at 7.4%. Other than these, next year growth expectations came down to 4.9% from 5% in previous survey while current account deficit for this year was revised up to USD 50.9bn from USD 49.4bn and to USD 51.2bn from USD 49.8bn next year.
