Central Bank of Türkiye Governor Karahan pledges tight monetary policy

Fatih Karahan, Governor of the Central Bank of Türkiye (TCMB), stated that the bank will maintain a tight monetary policy stance until price stability is achieved. Speaking at an economic meeting in Ankara, Karahan emphasized the importance of caution to ensure continued gains in the disinflation process.

Karahan noted that while the decline in annual inflation has recently lost some momentum due to energy price pressures and supply-side shocks, improvements are continuing in other sectors. He highlighted that natural gas prices have risen to three times their pre-war levels, contributing to these pressures.

Regarding specific sectors, Karahan reported a significant slowdown in rent inflation, noting it has dropped below 40 percent from 66 percent a year ago. He also discussed the impact of domestic demand slowing on the disinflation process and stressed that price stability is essential for improving the investment and production environment by facilitating long-term planning.