Demand conditions not to be allowed to disrupt disinflation: Karahan

WASHINGTON

The Turkish Central Bank will not allow demand conditions to disrupt the disinflation process, Governor Fatih Karahan has vowed.

In a presentation in Washington, titled “Challenges in reading macroeconomic data in Türkiye,” Karahan reiterated that the tight monetary policy stance, which will be maintained until price stability is achieved, will strengthen the disinflation process through demand, exchange rate and expectation channels.

The annual inflation rate in Türkiye was 33.29 percent in September, up from 32.95 percent in August, and above the expectation of around 32.5 percent, the Turkish Statistical Institute (TÜİK) announced on Oct. 1.

The rise in annual inflation ended a 15 month-streak of falls.

Meanwhile, the monthly inflation rate was 3.23 percent in September, up from 2.04 percent in August, also exceeding market expectations of 2.6 percent.

In his prestation Karahan also said data sources differ on the strength of economic activity.

He noted that the shift toward digitalization has blurred various data releases, making it harder to interpret macroeconomic trends.

Karahan emphasized that the bank monitors a wide range of indicators to draw robust, real-time conclusions.