Turkish Central Bank Governor Durmus Yilmaz said Thursday that inflation is likely to exceed the official year-end target of 5 percent, speaking at a gathering in the western city of Izmir.
Yilmaz cited volatile exchange rates, elevated oil prices, and rising commodity costs as near-term pressures on inflation, though he described those effects as temporary. He stressed that price stability remains the bank's paramount objective and cannot be traded off against other goals.
The governor expressed confidence that a 4 percent inflation target for the following two years remained within reach. He added that the bank would assess the effects of recent rate increases and stood ready to intervene in foreign exchange markets if conditions required it.
Yilmaz identified Türkiye's ties with the European Union and the International Monetary Fund as critical anchors for the broader economy. He noted that short-term interest rates are the bank's primary policy instrument.
The remarks came a day after the Central Bank's Monetary Policy Committee raised benchmark rates sharply, lifting the overnight borrowing rate from 13.25 to 15 percent and the lending rate from 16.25 to 18 percent.
Historical summary. TurkishPress restated this wire report, first published in June 2006, in its own words.