Central Bank Governor Karahan: The Disinflation Process is Ongoing

Forex - The President of the Central Bank of the Republic of Turkey (CBRT), Fatih Karahan, stated that the disinflation process is ongoing.

Karahan gave a presentation titled "Monetary Tightening and Macro-Financial Stability" at the Foreign Economic Relations Board.

He pointed out that the tight monetary policy stance positively reflects on reserves, stating, "The balance of the KKM has decreased, and the share of Turkish lira deposits has increased."

Indicating that the slowdown in the main trend of inflation is continuing, Karahan provided the following messages:

"Basic goods continue to show a relatively positive trend. The tendency to index to the past is pushing service inflation upwards. Price increases in services, excluding rent, are gradually losing momentum. The process of balancing demand is ongoing. While maintaining export strength, imports are remaining moderate. Inflation expectations of consumers and firms have also begun to trend downwards. The monthly increase in producer prices is maintaining a moderate course. The tight monetary stance is being preserved. The tight monetary stance is supported by macroprudential measures. The increase in commercial credit is below growth limits. The decrease in risk premiums is facilitating access to external financing."