Turkey’s Central Bank Says Lira Asset Preference Remains Strong
Fatih Karahan said proactive measures limited potential fund-related spillovers, while inflation pressures continue to shape the bank’s cautious policy stance.
Key takeaways
- Karahan said demand for lira assets remained strong under tight monetary policy.
- He said potential spillovers from funds facing trading restrictions were limited by proactive measures.
Turkish Central Bank Governor Fatih Karahan said preference for lira assets remained strong under tight monetary policy. He also said proactive measures had limited potential spillovers from funds facing trading restrictions.
Speaking at a presentation in Bangkok during the IMF-World Bank meetings, Karahan said supply pressures had slowed disinflation. Energy prices had significantly affected inflation in 2026, but the underlying pace of inflation was still slowing, he said.
Karahan said interest-rate decisions would be based on the inflation outlook and made cautiously at each meeting. He said policy would be tightened if inflation deviated significantly from interim targets, and that the current account deficit remained under control despite unfavorable external conditions.
This article was produced with the help of AI technology. Based on reporting by the outlets listed above.
