Turkey Central Bank Hits Hawkish Note in Inflation Outlook Hold

Turkey’s central bank stuck to its year-end inflation forecast and signaled that it’ll keep interest rates higher for longer to meet it.

The bank is ready do “whatever is needed” to tame price pressures, Governor Fatih Karahan said at the central bank’s quarterly inflation presentation in Istanbul. It saw a “temporary” effect on prices of currency volatility in March and will be monitoring the pass-through effect, Karahan said. “The risk toward inflation remains to the upside,” he added.