Business · Economy · 7 hrs ago
Turkey’s central bank chief vows to keep monetary policy tight
Turkey’s central bank chief Fatih Karahan said the bank will keep monetary policy tight until price stability is achieved.
He spoke at an economic event in Ankara as energy costs continue to put pressure on prices.
Higher energy prices are slowing the fall in inflation, though weaker domestic demand and easing price pressures in some areas are helping.
Karahan said the annualized underlying inflation trend was 23.7% in October, about six percentage points below the current annual inflation rate.
This suggests inflation could keep easing if supply-side pressures fade, but the bank says it will remain cautious about risks.
The central bank will monitor financial and liquidity conditions and take additional measures if it considers them necessary.
Central Bank of the Republic of Türkiye Governor Fatih Karahan said the bank would maintain tight monetary policy until price stability is achieved.
He said energy-price pressures were limiting improvements in headline inflation, while slower domestic demand was supporting disinflation.
Karahan reported that the annualised underlying inflation trend stood at 23.7% in October, below the current annual inflation rate by about 6 percentage points.
He said annual energy inflation had risen to 51.4%, while rent inflation fell from 66% a year earlier to below 40% in October.
Karahan said the bank was monitoring funding-market developments and would take additional measures proactively if needed.
- Who
- Fatih Karahan, governor of the Central Bank of the Republic of Türkiye.
- What
- He said tight monetary policy would continue until price stability is achieved and that the bank could take further measures if needed.
- When
- November 6, 2026.
- Where
- An Economy Meeting organised by TÜGİAD Ankara. The sources do not specify the venue.
- Why
- To address inflation and support disinflation, while responding to energy-price pressures and monitoring financial stability and liquidity.
This story does not have two clearly opposing sides.
The central bank took measures to support tight monetary policy after the war began.
Inflation began to decline again following coordinated policy steps, Karahan said.
The annualised underlying inflation trend stood at 23.7%, and rent inflation was below 40%.
Karahan addressed the TÜGİAD Ankara Economy Meeting and reiterated the commitment to tight monetary policy.
- Governor
- Fatih Karahan
- Underlying inflation trend
- 23.7% in October
- Annual energy inflation
- 51.4% in October
- Rent inflation
- Below 40% in October, down from 66% a year earlier
- Natural gas prices
- About three times their pre-war level
2 sources
What people are saying
We will resolutely maintain the monetary tightness required for disinflation until price stability is achieved.
We will continue to closely monitor financial stability and liquidity conditions and, if deemed necessary, proactively take any additional measures.
Supply-side shocks, particularly through energy prices, continue to affect the inflation outlook.
If supply-side pressures fade, disinflation is likely to continue in the coming period.