TCMB Governor Karahan's Statement on Disinflation and Price Stability
Central Bank Governor Fatih Karahan stated that thanks to the implemented tight monetary policy, the underlying trend in inflation has declined and the disinflation process will gain momentum in the upcoming period.
Central Bank of the Republic of Turkey Governor Fatih Karahan, in an evaluation made at a summit held at the Istanbul Finance Center, stated that the tight monetary policy has provided a clear slowdown in domestic demand and a decline in inflation has been observed.
Critical Statements at the Summit
Central Bank of the Republic of Turkey Governor Fatih Karahan made important evaluations regarding economic developments at a summit held at the Ziraat Towers Auditorium in the Istanbul Finance Center.
Global Risks and Monetary Policy
Stating that the process starting in February led to an increase in energy and commodity prices, a rise in transportation costs, and disruptions in supply chains, Karahan noted that they took supportive measures for the tight monetary policy at the beginning of March in order to limit geopolitical risks.
Downward Trend in Inflation
Conveying that the slowdown in domestic demand has become pronounced as a result of the tight monetary policy stance, Karahan reported that following the temporary rise in the March-June period, a decline in the underlying trend of inflation has been recorded once again starting from July.
September Inflation Figures
Stating that annual inflation fell to the level of 29.7 percent in September, Karahan emphasized that the rate, which was 75.5 percent in May 2024, has dropped significantly under the impact of the tight policy.
Price Developments by Groups
Expressing that annual inflation in all groups except the energy group has declined compared to last year, Karahan mentioned that core goods inflation has progressed moderately, while the annual price increase in the energy group materialized at the level of 46.1 percent.
Reserves and Preference for TRY
Noting that the preference of domestic residents for the Turkish Lira continues to remain strong and the share of TRY deposits has exceeded 61 percent, Karahan added that gross reserves reached 171 billion dollars and net reserves excluding swaps reached 40 billion dollars as of September 25.