Turkey’s central bank may tighten monetary policy
Turkey’s central bank raised its inflation forecasts for this year and next on Friday and said it was ready to tighten policy further if needed, but added it was confident that its recent steps would start to bear fruit in the months ahead. At a quarterly presentation, the bank raised its midpoint forecast for inflation at the end of 2017 to 8.5 percent from a previous forecast three months ago of 8 percent. It lifted its forecast for the end of 2018 to 6.4 percent from 6 percent. Governor Murat Cetinkaya said monetary policy would remain tight until there was a significant improvement in the inflation outlook. He said the bank’s sharp monetary tightening since January would impact inflation.