Turkey's central bank lifted its year-end inflation forecast range to 15-21% from 13-19% previously even as it kept its interim target at 16%, Governor Fatih Karahan said today.
Presenting the central bank's quarterly inflation report in Istanbul, Karahan said the adjustment to the range was caused by a change in data calculations, energy prices and food prices.
The bank also left its end-2027 interim target at 9%, in a forecast range of 6-12%. It set the end-2028 interim target at 8%.
The bank seeks to avoid adjusting its targets, even as forecasts can change.
"We stand ready to tighten our monetary policy stance in case of a significant deviation in inflation outlook from the interim targets," Karahan said in his speech.
On the other hand, he said the threshold to increase the size of rate cuts from 100 basis points previously is a bit high.
Last month, Turkey's central bank lowered its key interest rate by a less-than-expected 100 basis points to 37%, citing firming inflation, pricing behaviour and expectations that threaten the disinflation process. It was the fifth consecutive easing move since last summer.
In January, consumer price inflation leapt to a higher-than-expected 4.84% month-on-month, driven in part by new year price adjustments and a jump in food and non-alcoholic drinks prices.
The rate of annual inflation dipped to 30.65%.
