15.01.2026 09:41
Central Bank President Fatih Karahan, who met with investors in London and New York, made statements regarding monetary policy. Karahan clearly indicated the possibility of fluctuations in inflation over the next two months.
The Central Bank President Fatih Karahan, in his presentations to investors in London and New York, made statements regarding monetary policy. Karahan emphasized that the decline in inflation is widespread, and the improvement in the main trend has become significantly evident, while stressing that there will be no compromise on a tight stance until price stability is achieved.
According to the messages given in the presentation, the disinflation process is not limited to headline figures. While the decline in the main trend has become more pronounced, it was stated that this improvement has spread to general pricing behavior. Karahan pointed out that the correction in inflation expectations of the real sector and households supports pricing discipline.
"GROWTH MAINTAINS ITS RESILIENT TREND"
Karahan stated that in his assessment of economic activity, growth maintains its resilient trend, but other activity indicators are giving more mixed signals. This situation conveyed the message that a cautious and data-driven approach is necessary in monetary policy.
"FLUCTUATIONS IN INFLATION MAY OCCUR"
Central Bank President Karahan clearly indicated the possibility of fluctuations in inflation in the next two months. However, Karahan highlighted that the reduction in rigidity in service inflation will be the main factor supporting disinflation in 2026, bringing forth optimism for the medium term.
"TIGHT MONETARY POLICY WILL BE SUSTAINED WITH DETERMINATION"
One of Karahan's strongest messages was regarding the direction of monetary policy. Accordingly, the Central Bank of the Republic of Turkey will steadfastly maintain its tight monetary policy stance until price stability is achieved. It was stated that this stance would strengthen the disinflation process through the channels of demand, exchange rates, and expectations.
Karahan mentioned that the steps to be taken regarding the policy interest rate will be determined in line with intermediate targets, taking into account inflation realizations, the main trend, and inflation expectations. It was emphasized that a meeting-based, cautious, and inflation outlook-focused approach would be followed in interest rate decisions. Karahan stated that if the inflation outlook deviates significantly from the intermediate targets, the monetary policy stance will be tightened further.