Turkey's Central Bank Chief Karahan Unveils Three-Year Inflation Targets
Central Bank of the Republic of Turkey Governor Fatih Karahan unveiled interim inflation targets for 2026, 2027 and 2028 in the third-quarter Inflation Report. Karahan said the disinflation process will continue with determination and the tight policy stance will be maintained. The bank now forecasts a year-end reading of 26%.
Central Bank of the Republic of Turkey Governor Fatih Karahan said the disinflation path is now anchored to a three-year programme as he presented the third-quarter Inflation Report. The bank confirmed its year-end inflation forecast at 26% and laid out targets for 2027 and 2028.
Karahan said the tight policy stance will be kept in place for as long as required and that gradual steps will follow incoming data with discipline. The governor flagged credit growth, the exchange rate and services inflation as items under close watch.
Market participants noted that keeping the year-end forecast at the upper end of the band is supportive for the lira but that food and energy continue to carry upside risk. The BIST 100 index and benchmark bond yields traded in a narrow range after the briefing.
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