Turkey Central Bank Chief Signals Tight Policy Will Continue
Fatih Karahan said policy would remain tight until price stability is achieved, with further tightening possible if inflation diverges from interim targets.
Key takeaways
- Karahan said tight monetary policy would continue until price stability is achieved.
- He said policy could be tightened if the inflation outlook diverges significantly from interim targets.
Central Bank of the Republic of Türkiye Governor Fatih Karahan said tight monetary policy would continue until price stability is achieved. He also said the central bank would tighten its stance if the inflation outlook diverges significantly from interim targets.
Speaking at an IMF-World Bank meetings presentation in Bangkok, Karahan said policy decisions would be made cautiously at each meeting, based on the inflation outlook. He said officials would consider actual and expected inflation, along with its underlying trend.
Karahan said core inflation was slowing despite high energy prices, while weak demand was limiting inflationary pressure from supply shocks. He also said the preference for the Turkish lira remained strong under tight monetary policy.
This article was produced with the help of AI technology. Based on reporting by the outlets listed above.
