Turkish central bank raises inflation forecasts, pledges tight policy
Turkiye's central bank raised its end-2027 inflation forecast to 21% and its end-2028 forecast to 13.5% on Thursday, with Governor Fatih Karahan saying the bank would maintain a tight policy stan...
Turkiye's central bank has revised its inflation projections upwards, forecasting 21% inflation by the end of 2027 and 13.5% by 2028. Governor Fatih Karahan announced the bank will continue to maintain a "tight monetary policy stance" until inflation stabilises. The previous forecasts were 15% for end-2027 and 9% for 2028. Karahan stated the changes do not signal a shift in policy, describing the update as "not carrying an easing signal in monetary policy."
The bank attributes the supply-side shocks caused by geopolitical events as limiting the decline in inflation. The Turkish lira experienced a slight devaluation against the dollar following the announcement.
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