TCMB: Energy Prices Rising Amid Global Uncertainty

The Turkish Central Bank (TCMB) Monetary Policy Committee stated that energy prices are showing a renewed upward trend due to increasing geopolitical uncertainties. The TCMB emphasized that energy supply, supply chain disruptions, and transportation costs will remain key factors. The summary noted that growth forecasts for Middle Eastern and African countries have been revised downward, with recovery expected in 2027 due to base effects. Additionally, the global growth index is projected to increase by 1.7% in 2026 and 2.5% in 2027. Inflation risks remain elevated due to volatility in commodity prices. Core market data showed declines in both recorded domestic orders and forward-looking expectations.

Remember that the TCMB lacks direct intervention authority over energy prices; the persistence of global supply shocks and shifts in inflation expectations will continue to influence interest rate pricing.