Turkish central bank lifted its inflation forecast for the end of 2026 to 28% but left its interim inflation target for the same period unchanged at 24%, while pledging to maintain a tight monetary stance, its chief said on Thursday.
Presenting the quarterly inflation report in Istanbul, Central Bank of the Republic of Türkiye (CBRT) Governor Fatih Karahan also said that the bank kept its interim inflation target for end-2027 steady at 15% and the interim target for end-2028 stayed at 9%.
"The CBRT will ensure the tightness required by the projected disinflation path in line with the interim targets," Karahan said.
The bank revised its year-end forecast slightly from the earlier forecast of 26%, in line with market expectations, as it cited mainly developments related to energy prices. It also warned of higher food prices despite an increase in domestic production.
"The outlook for diesel, natural gas and commodity prices excluding energy contributed to the 2-percentage-point revision in the year-end 2026 forecast," Karahan said.
