Türkiye’s Central Bank Governor Fatih Karahan has pledged to maintain a stringent monetary policy until lasting price stability is secured, signaling the bank’s unwavering commitment to tackling the country’s persistent inflation crisis.

Speaking at a presentation on Türkiye’s monetary policy and inflation outlook in New York on Wednesday, Karahan highlighted encouraging signs of declining inflation across multiple sectors but warned that the bank is prepared to tighten policy further if inflation veers significantly off course.

According to the presentation released by the Central Bank on Thursday, Karahan emphasized that the policy rate will continue to be set based on both realized and anticipated inflation trends, as well as the underlying trajectory of price increases. “The policy rate will be determined by considering realized and expected inflation, along with its underlying trend,” he stated, underscoring the bank’s data-driven approach to restoring economic stability.

Türkiye has been grappling with high inflation, which has severely undermined purchasing power and placed immense pressure on policymakers to adopt a restrictive monetary stance. Karahan noted that the government’s medium-term economic programme is expected to bolster the ongoing disinflation process, fostering confidence in the Central Bank’s strategy to anchor inflation expectations.

The governor’s remarks come as Türkiye navigates a challenging economic landscape, with the Central Bank’s tight policy aimed at curbing price pressures and rebuilding trust in the nation’s economic management. Analysts see the bank’s resolute stance as a critical step toward stabilizing the Turkish lira and easing the financial burdens faced by millions of households across the country. (ILKHA)