Turkish inflation forecast revised upward to 12.2%

Turkey’s central bank raised its year-end inflation forecast on Thursday to 12.2% from 9.4%, in part due to pressure from lira depreciation, and its new governor said tight policy would be maintained until price pressures decline.

Presenting a quarterly inflation report for the first time since he was appointed last month, Governor Sahap Kavcioglu said the policy rate, now at 19%, would be set above inflation, which topped 16% last month and is expected to head a bit higher. [Reuters]