06.05.2025 16:30
The President of the Central Bank of the Republic of Turkey, Fatih Karahan, made a presentation at the Grand National Assembly of Turkey. In his presentation, Karahan stated, "Inflation expectations have entered a downward trend. We will continue to maintain our firm stance on monetary policy in the upcoming period."
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The President of the Central Bank of the Republic of Turkey, Fatih Karahan, made a presentation at the TBMM Planning and Budget Commission. In Karahan's presentation, which explained the activities of the Central Bank, the current messages to be given, especially regarding monetary policy, exchange rates, and liquidity, are at the center of the markets' focus.
"THE MAIN TREND OF INFLATION HAS DECLINED"
Karahan's statements are as follows: The main trend of inflation has declined. The decrease in service inflation has become evident. Inflation expectations have entered a declining trend. We will maintain our firm stance in monetary policy in the upcoming period. We will act in a way that ensures continuity. In the upcoming period, we will continue to maintain our firm stance in monetary policy to ensure the continuation of disinflation. The disinflation process has been ongoing since June 2024, and the main trend of inflation has declined.
"THE IMPACT OF VOLATILITIES IS LIMITED"
The recent financial volatilities have had a limited impact on the total share of TL in the system. The tightness in financial conditions continues. It is necessary to maintain a tight and firm stance in monetary policy. A decrease in commodity prices is expected to support disinflation. Expectations continue to be a risk factor in terms of the disinflation process. We will continue to use all policy tools proactively and decisively within market rules. Considering that uncertainties are higher than in the past, we are exhibiting a cautious and tight monetary policy stance.
"THE CONTINUATION OF DISINFLATION WILL BE ENSURED"
In March, we took proactive measures in response to the volatility in financial markets. In the upcoming period, we will continue to maintain our firm stance in monetary policy to ensure the continuation of disinflation. We expect that the ratio of the current account deficit to national income in 2025 will be higher than in 2024, but below long-term averages. The main trend indicators point to the continuation of the disinflation process.
"PRESSURES ON PRICES ARE EASING"
We are closely monitoring the main trend indicators we have created to better understand the course of inflation. Cost-related pressures on consumer prices are easing. The fact that this situation is not limited to certain sectors but is widespread is an important development for us. Inflation expectations continue to hover above our disinflation path. This outlook necessitates maintaining our tight and firm stance in monetary policy. While preserving our determination for the continuation of the disinflation process, we will continue to closely monitor liquidity conditions and effectively use liquidity management tools.
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