Fatih Karahan: The Turkish Lira is Strengthening, Reserves are Increasing.

The Planning and Budget Commission of the Grand National Assembly of Turkey, chaired by AK Party Samsun Deputy Mehmet Muş, convened. The notable figure in the meeting was CBRT President Fatih Karahan, who delivered a comprehensive presentation on global developments, as well as the Turkish economy, inflation, and monetary policies. He shared important information particularly regarding the distinct effects of tight monetary policies.

In his presentation, Fatih Karahan stated that domestic demand in Turkey continues to exhibit a persistent slowdown. However, he emphasized that demand conditions are progressing at a disinflationary level. He expressed that despite the slowdown of the disinflation process initiated from June 2024, the steps to be taken would keep inflation rates in line with medium-term targets. "We cannot deny the importance of the distance we have covered in ensuring price stability. In the upcoming period, we will continue to resolutely use all our monetary policy tools," he said.

The meeting also addressed the slight reduction in uncertainties in global trade. Karahan pointed out that although these uncertainties remain at high levels, geopolitical developments continue to play a decisive role in the global economic outlook. "The relative decrease in uncertainty has led to a recovery in the global growth outlook. Growth forecasts have been upwardly revised in many countries compared to past bottom levels. However, as of September, the general global growth outlook continues to lag behind compared to January. External demand indicators are also below January levels," he noted.

Evaluating the fluctuations in energy prices in his presentation, Karahan stated, "Geopolitical developments continue to exert influence on energy prices. Weak demand conditions and gradual production increases are limiting upward movements in energy prices." He provided positive messages indicating that recent measures would contribute to the appreciation of the Turkish lira, and he expressed his belief that enhancing confidence in the markets would benefit everyone.