TCMB Governor Fatih Karahan Signals Percentage 30.9 Inflation and Percentage 38 Policy Rate

TCMB Governor Fatih Karahan delivered key messages on inflation, interest rates, and global risks at the 94th General Assembly meeting.

TCMB Governor Fatih Karahan Signals Percentage 30.9 Inflation and Percentage 38 Policy Rate
Liberal TR Haber Merkezi
Publish: 27.04.2026
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Fatih Karahan delivered critical assessments on Turkey’s economic outlook and monetary policy roadmap at the 94th General Assembly of the Central Bank of the Republic of Turkey.

Karahan emphasized that price stability is a prerequisite for sustainable growth and social welfare, stating that the Central Bank continues to shape its policies with the goal of making disinflation permanent. He noted that inflation declined by 13.5 points in 2025, reaching 30.9%, highlighting the role of tight monetary policy in this process.

Pointing to ongoing global uncertainties, Karahan underlined that rising geopolitical tensions in the Middle East in early 2026 pushed energy prices higher, creating inflationary pressure. He stressed that the Central Bank responded with timely and effective measures.

Addressing monetary policy steps, Karahan stated that the policy rate was gradually reduced to 38% in 2025, while maintaining a tight stance to preserve financial stability. In 2026, a more cautious approach has been adopted due to geopolitical risks, with the possibility of further tightening if necessary.

Karahan also announced the termination of the FX-protected deposit scheme, measures to strengthen Turkish lira deposits, and the introduction of new tools to reduce volatility in foreign exchange markets. He added that the TCMB continues to enhance the financial system through transparent communication and technological investments.

Editor’s Note:
Karahan’s remarks reflect the Central Bank’s commitment to disinflation. However, emphasizing both rate cuts and tight policy simultaneously may raise concerns about policy consistency. In a period of heightened geopolitical risks, clearer and more predictable monetary policy could be crucial.

Kaynak: Central Bank of the Republic of Turkey (TCMB)

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Liberal TR Haber Merkezi
Liberal TR Haber Merkezi
A digital news platform delivering developments in Türkiye and the world to its readers with an objective and principled perspective. Liberal TR Haber Merkezi.
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