CBRT Governor Karahan: Disinflation Process Supported

Fatih Karahan, Governor of the Central Bank of the Republic of Turkey (CBRT), provided assessments on the inflation outlook. Karahan stated that despite supply-driven increases in food and energy prices, the slowdown in demand and the reduction in price stickiness in the services sector have positively impacted the disinflation process. Governor Karahan emphasized that monetary policy will continue to be implemented decisively in the fight against inflation. He noted that the observed decrease in price stickiness, particularly in the services sector, has contributed to the improvement in inflation expectations. It was noted that the CBRT's tight monetary policy stance plays a significant role in balancing domestic demand and bringing inflation closer to the targeted path. Karahan expressed that supply-side shocks are temporary and that the improvement in core inflation indicators continues. The Central Bank conveyed the message that it is ready to use all necessary tools to achieve the forecasts outlined in its inflation report. Markets are interpreting Karahan's statements as signals regarding the future direction of monetary policy. This is not investment advice.