Türkiye Central Bank Governor Fatih Karahan signals continued tight monetary policy

Central Bank of the Republic of Türkiye (CBRT) Governor Fatih Karahan stated at the IMF–World Bank annual meetings in Bangkok that tight monetary policy will remain in place until lasting price stability is achieved. Karahan noted that while global and regional supply pressures, particularly rising energy prices, have slowed the disinflation process, tight domestic demand continues to support disinflation in core goods.

Addressing market volatility, Karahan remarked that recent fund outflows have not significantly weakened the preference of domestic residents for Turkish lira-denominated assets. He added that proactive measures have been taken to contain potential spillover effects from funds with restricted transactions.

The Governor emphasized that the CBRT will continue to base monetary policy decisions on actual and expected inflation. He warned that if the inflation outlook deviates significantly from interim targets, the central bank will consider further tightening its monetary policy stance to ensure the disinflation path remains on track.