Inflation & Prices
Turkey Hones Rates Message for New Policy Era Riddled With Angst
- Governor says central bank ready to tighten policy if needed
- Inflation forecast lifted to 38% from 36% for end of this year
This article is for subscribers only.
Turkish inflation is finally close to peaking but the central bank’s worry is here to stay, a disquiet that might keep interest rates higher for longer.
A revised outlook presented by officials on Thursday showed inflation ending 2024 at 38% — up from a previous forecast of 36% — and left next year’s estimate at 14%. Speaking at a quarterly presentation in Ankara, Governor Fatih Karahan reiterated hawkish messaging and signaled the central bank is ready to tighten monetary policy further if needed, saying its duty is to be cautious.