Karahan: Demand Conditions Will Not Disrupt Disinflation

Emphasis on Disinflation by Karahan

The President of the Central Bank of the Republic of Turkey (CBRT), Fatih Karahan, made significant evaluations regarding the country's macroeconomic data during a presentation held in Washington.

Economic Activity and Data Uncertainty

Speaking about the strength of economic activity, Karahan noted that various data sources exhibit differences, stating that the transition to digitalization has made the readability of data more challenging. This situation has caused macroeconomic data to become more complex.

Real-Time Indicators and Optimistic Expectations

Karahan emphasized that the results obtained by combining economic activity and demand indicators indicate that moderate economic growth will continue. He also stated that they monitor a wide range of indicators to conduct effective real-time analyses.

Tight Monetary Policy and Price Stability

Speaking about the disinflation process, Karahan stated, “The tight monetary policy stance will continue until price stability is achieved, strengthening the process of reducing inflation through the demand, exchange rate, and expectation channels. We will not allow demand conditions to disrupt the process of reducing inflation.”