Turkish Central Bank Raises Inflation Forecast for End of 2026 to 28%

Turkish Central Bank Governor Fatih Karahan said on Thursday that the bank raised its inflation forecast for the end of 2026 to 28 percent from 26 percent, but kept its interim inflation target for the same period at 24 percent.

While presenting the quarterly inflation report in Istanbul, Karahan said the central bank also kept its interim inflation target for the end of 2027 unchanged at 15 percent, while the interim target for the end of 2028 remained at 9 percent.

Karahan said, “The Turkish Central Bank will ensure the maintenance of the required monetary policy tightening in line with the expected path of declining inflation and in accordance with the interim targets.”

Last month, the central bank kept the main interest rate at 37 percent, in line with expectations, continuing to hold borrowing costs steady for the fourth consecutive meeting as it monitors the inflationary effects of the Iran war.

Turkey’s consumer price inflation rose 1.78 percent month-on-month in July, while the annual inflation rate edged down slightly to 31.75 percent from the previous month.