Central Bank Governor Karahan's Statement on Disinflation and Tight Monetary Policy
CBRT Governor Fatih Karahan announced that the implemented tight monetary policy has led to a slowdown in domestic demand and inflation, with annual inflation dropping to 29.7 percent in September.
Speaking at a summit held in Istanbul, Central Bank of the Republic of Turkey Governor Fatih Karahan stated that thanks to the tight monetary policy, a noticeable slowdown has been observed in domestic demand and annual inflation has declined to 29.7 percent as of September.
Critical Statements at the Summit
Central Bank Governor Fatih Karahan attended the "New Focus of Investment: Creating Value for the Future" summit organized by Bacacı Yatırım Holding at the Ziraat Towers Auditorium in the Istanbul Finance Center.
Global Risks and Measures
Stating that the process starting in February led to increases in energy and commodity prices, rising transportation costs, and disruptions in supply chains, Karahan reminded that they took measures supporting the tight monetary policy at the beginning of March.
Inflation and Productivity Data
Conveying that annual inflation fell to 29.7 percent in September, Karahan stated that annual inflation in the services group decreased by 7 points to 37.7 percent, and in the food and non-alcoholic beverages group to 27.6 percent. He also pointed out that productivity per worker, which had declined during the high inflation period, recovered again in 2025.
Reserves and Preference for TRY
Emphasizing that the preference for the Turkish Lira remains strong, Karahan reported that the share of TRY deposits exceeded 61 percent starting from the second quarter, and as of September 25, gross reserves reached 171 billion dollars while net reserves excluding swaps reached 40 billion dollars.