13.08.2026 11:10
The Governor of the Central Bank of the Republic of Turkey (CBRT), Fatih Karahan, announced the 3rd Inflation Report of the year. The Central Bank raised its year-end inflation forecast from 26 percent to 28 percent. Karahan said, "It is anticipated that inflation will decline to 15 percent by the end of 2027 and to 9 percent by the end of 2028, after which it will stabilize at the medium-term inflation target of 5 percent."
Fatih Karahan, Governor of the Central Bank of the Republic of Turkey, announced the year's third inflation report, which markets eagerly awaited. The year-end 2026 inflation forecast was revised upward to 28 percent.
Karahan said, "Amid uncertainty regarding the course of the war, we maintain our tight and prudent stance. Following the agreement reached between the US and Iran in June, we observed a temporary decline in geopolitical risks. In the subsequent period, geopolitical risks displayed a volatile outlook due to the course of the war and the flow of news regarding the possibility of a new agreement between the parties. Oil prices continue their high and volatile trend."
"WE WILL USE ALL TOOLS FOR PRICE STABILITY"
Karahan stated, "We will continue to use all our tools to achieve price stability by maintaining our tight stance. Global growth is expected to lose momentum in 2026. Expectations for tighter monetary policies globally have increased. Demand conditions are disinflationary. We believe that demand conditions will maintain a disinflationary outlook for the remainder of the year."
"DISINFLATION IS SLOWING"
Referring to the slowdown in disinflation, Karahan said, "We have gone through a process in recent months where disinflation slowed. There are upside risks to the current account deficit in the remainder of the year. Despite the improvement in production, the negative divergence in food inflation has become more pronounced. We have seen the impact of tight monetary policy in limiting the effect of recent shocks on inflation."
"DISINFLATION CONTINUES IN THE SERVICES SECTOR TOO"
Karahan stated, "We have seen the impact of tight monetary policy in limiting the effect of recent shocks on inflation. Despite supply shocks, disinflation continues in the services sector. The tight stance is maintained. Funding continues from the upper band. Credit growth, which accelerated in the last quarter of last year, has slowed significantly since the second quarter of this year. Deposit and commercial loan interest rates move in line with the weighted average cost of funding."
INFLATION FORECAST ANNOUNCED
The year-end 2026 inflation forecast was revised upward to 28 percent, and it is projected to decline to 15 percent by the end of 2027 and to 9 percent by the end of 2028, after which it will stabilize at the medium-term inflation target of 5 percent.