Turkish Central Bank Governor Fatih Karahan confirmed that the tight monetary policy stance will be maintained “until there is a significant improvement in inflation expectations.”
This came during the third inflation report meeting of the current year, chaired by Central Bank Governor Fatih Karahan on Thursday.
In this context, Karahan said that the Central Bank did not change its inflation expectations for the end of 2024, 2025 and 2026, and they remained stable at 38 percent, 14 percent and 9 percent, respectively.
He stated that they expect seasonally adjusted monthly inflation to decline to 2.5 percent in the third quarter of this year and to 1.5 percent in the last quarter of 2024.
He stressed that they will continue to maintain a tight monetary policy stance “until there is a significant improvement in prices and inflation expectations.”
He added, “We will continue to do whatever is necessary to reduce inflation in line with the intermediate targets we have set.”
It is noteworthy that the Turkish Central Bank has kept the interest rate at 50 percent since last March without change.
