TCMB Governor Karahan on Disinflation Process and Inflation Assessment

Central Bank of the Republic of Turkey Governor Fatih Karahan made important statements regarding the economy and inflation outlook at a summit he attended. Karahan noted that the disinflation process will regain momentum as shock effects lessen.

Effects of Tight Monetary Policy

Central Bank Governor Fatih Karahan stated at the summit that the dampening effect of tight monetary policy implementations on domestic demand has become prominent. He indicated that this stance contributes to the economic balancing process.

Recent Developments in Inflation

Drawing attention to the renewed decline in the underlying trend of inflation starting from July, Karahan expressed that recent developments reveal significant distance has been covered on the path to disinflation.

Impact of Geopolitical Developments

Stating that geopolitical developments were the main reason for the loss of momentum in the disinflation process during the year, Karahan noted that energy prices followed a different course compared to other inflation items.

Price Stability and Determination

Emphasizing that they will continue to use all available instruments resolutely in line with the price stability target, Karahan noted that a permanent decline creates a favorable basis for long-term investments.