Turkey Set to Unveil Inflation Outlook That Holds Clues to Rates

Turkey’s central bank will likely raise its inflation forecasts for the next two years on Thursday, an adjustment that would signal interest rates still need to shift far higher even after five large hikes.

The quarterly outlook has taken on new prominence since Governor Hafize Gaye Erkan’s appointment in June, with officials now saying they want to tether monetary policy to the projected path for consumer prices, as opposed to the current inflation rate.