TCMB Governor Karahan: Monetary Policy to Be Tightened if Inflation Deteriorates

Fatih Karahan, Governor of the Central Bank of the Republic of Turkey (TCMB), stated that a broad-based decline in inflation has been observed since May 2024. Karahan emphasized that if recent developments lead to a significant and persistent deterioration in the inflation outlook, the monetary policy stance will be tightened. Karahan's remarks indicate that the TCMB remains resolute in its fight against inflation and will not hesitate to use tools such as interest rate hikes if necessary. The central bank signals its preparedness against a potential deterioration in inflation expectations, a development closely monitored by markets. Experts note that Karahan's message suggests the TCMB intends to maintain its current tight monetary policy but may take additional steps depending on inflation dynamics. Volatility in food and energy prices, in particular, continues to pose risks to the inflation outlook. This is not investment advice.