Turkey Primes Market for Rate Cuts With Tweaks in Price Forecast

Turkey’s central bank lowered its inflation forecast for this year, opening the door for what may be the biggest easing push in emerging markets even as new Governor Murat Uysal struck a note of caution.

Under the central bank’s base-case scenario released on Wednesday, inflation will end this year at 13.9%, down from its previous forecast for 14.6%. It left next year’s estimate unchanged at 8.2%. Price growth slowed in June to an annual 15.7% thanks to a stronger lira and a moderation in food and energy costs.