world-economy

Energy Shock From Iran Conflict Forces Turkey's Central Bank to Lift Inflation Forecasts

Turkey's central bank faces mounting pressure to revise its inflation outlook higher following a global energy price surge tied to the US-Israeli conflict with Iran. Governor Fatih Karahan is scheduled to present the monetary authority's quarterly monetary policy report Thursday, with market participants anticipating upward revisions to both the year-end inflation target and forecast range. The central bank's current inflation target sits at 16%, with a forecast corridor of 15%-21%. The geopolitical tensions have created headwinds for Turkish policymakers attempting to stabilize prices. Energy-driven cost pressures threaten to complicate the central bank's disinflation efforts.