Turkish central bank raises 2026 inflation forecast to 26% amid Iran war risks

The Central Bank of Türkiye raised its 2026 inflation forecast to 26% due to risks stemming from the Iran war and disruptions in energy markets around the Strait of Hormuz. The bank projects inflation to fall to 15% by the end of 2027 and 9% by 2028, while suspending inflation forecast ranges due to heightened global uncertainty. It plans to maintain a tight monetary policy stance to manage inflation risks.