Latest News from Turkey
Turkey’s central bank raises 2026 inflation target to 24%
Turkey’s central bank lifted its 2026 inflation target to 24% from 16%, signaling worsening price pressures and a more cautious outlook for the economy. The move reflects persistent inflation challenges as policymakers try to restore credibility and control expectations.
Inflation expectations worsen amid war-linked energy shocks
A new survey shows market participants in Türkiye have raised both year-end and 12-month inflation forecasts, with analysts pointing to higher energy and transportation costs linked to the Iran war. The survey also showed a slight downgrade in Türkiye’s 2026 growth outlook to 3.3%.
Erdoğan urges Turkic states to deepen defence industry cooperation
President Recep Tayyip Erdoğan called on Turkic states to expand cooperation in the defence industry during an informal Organization of Turkic States summit in Turkestan. He said global crises, including conflicts in Palestine, Lebanon, Iran and Ukraine, highlight the need to strengthen collective security.
Turkey’s ‘Blue Homeland’ bill could enable unilateral 200-mile EEZ claims
Reports say a proposed Turkish bill could give President Erdoğan authority to declare an Exclusive Economic Zone extending up to 200 nautical miles. The move would likely raise regional tensions because EEZ claims in the Eastern Mediterranean are highly contested.
Turkey proposes NATO military fuel pipeline through Romania and Bulgaria
Turkey has reportedly proposed a $1.2 billion NATO pipeline to move military fuel through Romania and Bulgaria, aimed at improving supply resilience for the alliance’s eastern flank. The project is described as military in nature and separate from commercial energy pipeline plans.
Environmentalists warn mines are draining Turkey’s water sources
Environmental groups are warning that mining activity is damaging and depleting water sources across Turkey. The concern adds to broader environmental and resource-management debates, especially as climate stress and water scarcity grow.
Market participants expect Turkey’s policy rate to stay unchanged in June
The central bank survey indicates investors expect no change to the benchmark policy rate at the June meeting. That expectation suggests authorities may keep a cautious stance while monitoring inflation, currency pressures and the regional shock to energy markets.
Turkish lira expectations weaken further in the latest survey
Survey respondents increased their year-end dollar/lira forecast to 51.57 from 51.23, while the 12-month outlook rose to 54.69. The upward revisions reflect continued concern over inflation, external shocks and currency depreciation.
Türkiye’s 2026 growth forecast slips to 3.3%
The central bank’s latest survey showed a modest deterioration in growth expectations for Türkiye. Participants cut the 2026 GDP forecast to 3.3% from 3.5%, while the 2027 projection stayed at 4.1%.
Turkey faces broader regional risk from Middle East conflict
Analysts and survey participants are linking Turkey’s inflation and FX outlook to escalating conflict in the Middle East, especially disruptions around Iran and the Strait of Hormuz. Those risks are adding to already elevated energy costs and macroeconomic uncertainty in Türkiye.