Turkey Keeps Door Ajar for Rate Cuts Despite Price Risks

Turkey’s central bank drew a bleaker assessment of the country’s year-end inflation trajectory but left the door open for future interest-rate cuts.

The monetary authority expects annual price gains to slow to between 15% and 21% at the end of the year, slightly higher than its previous estimated band of 13% to 19%, Governor Fatih Karahan said Thursday at a quarterly presentation in Istanbul. The year-end target — a measure used to guide policy — remained unchanged at 16%.