CBRT Governor Karahan'ized Statement on MTP Inflation Revision
Central Bank Governor Fatih Karahan emphasized that the inflation forecast revision made within the scope of the Medium-Term Program should not cause pessimism.
Central Bank of the Republic of Turkey Governor Fatih Karahan stated that the inflation forecast revision within the framework of the 2027-2029 Medium-Term Program should not lead to pessimism, noting that the updates stem from past effects and global dynamics.
Answered Questions After MTP
Central Bank of the Republic of Turkey Governor Fatih Karahan answered questions from members of the press following the announcement of the 2027-2029 Medium-Term Program by Vice President Cevdet Yılmaz.
Inflation Report and the Rationale for Revision
Stating that they had explained in their latest inflation report that while updating the end-2026 inflation forecast, the process for 2027 and beyond would be handled within the scope of the MTP, Karahan said today's revision was a reflection of this.
Coordination and Setting of Targets
Addressing claims that a higher target than the Central Bank's own targets was announced, Karahan expressed that these targets were determined in coordination, delivering the message that this coordination in managed and guided prices will be stronger going forward.
Global Conjuncture and the Impact of Wars
Pointing out the effect of inflation exceeding the target within a year spilling over into subsequent years, Karahan stated that part of the revision reflects this, while another part reflects changing dynamics in the global conjuncture.
Supply Shocks and Cost Pressures
Stating that supply shocks have been frequent in recent years, Karahan reported that they calculated the impact of physical wars experienced this year on inflation dynamics to be close to 7 points, and touched upon persistence in services inflation and transportation cost pressures.