Central Bank Raises 2026 Inflation Forecast, Dollar/TL Expectations Rise

The Central Bank of the Republic of Turkey (TCMB) increased its year‑end 2026 inflation projection from 18% to 26%. This revision prompted global financial institutions to revise their dollar/TL expectations upward. Foreign institutions highlighted that the Turkish lira has hovered near its peak from the past year, underscoring a continued depreciation trend. As a result, year‑end forecasts have sharpened and market expectations have adjusted accordingly. Given the close link between the dollar/TL movement and inflation, risks are expected to persist. Currency volatility remains a key indicator for both domestic and international investors. Investors are advised to review their risk tolerance and portfolio strategies in light of these developments. This is not investment advice.