Turkey’s central bank announced an upward revision to its interim inflation target for the end of 2026, setting the goal at 24% rather than the previously stated 16%, Governor Fatih Karahan said on Thursday. The change was disclosed at the central bank’s quarterly inflation report presentation held in Istanbul.
At the same event Karahan also said the bank raised its end-2027 interim inflation target to 15% from 9%, and established an end-2028 interim target of 9%.
Karahan pointed to the ongoing Iran war as a source of pronounced, near-term inflationary effects. He framed the principal uncertainty for the inflation projection around the length of regional tensions and the related pressure on energy supplies, saying the duration of that tension is a key risk factor for the outlook.
On the policy stance, the governor emphasized that the central bank will not compromise on its determination to reduce inflation. He said the bank will continue to employ all available instruments in pursuit of disinflation.
The announcement updates the central bank’s multi-year interim targets and places a spotlight on regional developments affecting commodity and energy markets. Karahan’s remarks tied the revision directly to the elevated inflationary forces he said are linked to the Iran war and to the uncertainty surrounding energy availability.
Beyond the revised numerical targets for 2026 through 2028, Karahan’s presentation highlighted two interlinked themes: first, that regional geopolitical tension is having measurable inflationary effects in the short term; and second, that the persistence of those tensions will materially shape the bank’s inflation path.
While the central bank adjusted its planned endpoints for inflation, it reiterated a firm commitment to disinflation and signaled continued readiness to use its policy toolkit to achieve that aim.