Turkey Scraps Inflation Target In Face of Enery Price Shocks

Turkey’s central bank presented a bigger than expected revision to its year-end inflation target and suspended the use of a forecast range, citing major uncertainty precipitated by the US-Israeli war on Iran.

Governor Fatih Karahan said during a quarterly presentation in Istanbul on Thursday that the bank is now aiming for a year-end inflation target of 24%, up from the previous 16%. Policymakers use the target to determine the interest-rate path.