The central bank has raised its interim inflation targets, forecasting 26% by end of 2025 and 24% in 2026.
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Governor of the Central Bank of Turkey Fatih Karahan announced an upward revision of the bank's inflation forecasts for coming years.
The bank set interim inflation targets at 24% for 2026, 15% for 2027, and 9% for 2028.
Inflation is expected to reach around 26% by end of 2025, reflecting an increase compared to previous targets.
The move comes amid continued inflationary pressures on the Turkish economy.
Turkey's central bank targets reducing inflation from 24% in 2026 to 9% by 2028, reflecting expectations of a gradual but long-term decline in prices. The roadmap indicates no expectation of inflation returning to single-digit levels before the end of 2028.
If you are saving money in Turkish lira or planning to buy real estate or a car, these targets mean your savings will continue to erode in value for the next three years at very high rates reaching 24% annually. If you have loans in lira, the central bank's forecasts point to continued very high interest rates that will increase financing costs in the coming period.
Mehmet Yılmaz