Central Bank Governor Karahan: 'TÜİK and ENAG have different methods'

Central Bank Governor Fatih Karahan, in his presentation at the TBMM Planning and Budget Committee, answered the question of why the Currency-Protected Deposit (KKM) scheme has not yet been closed. 

Pointing out that there has been a 100 billion dollar reduction in the KKM balance since August 2023, Karahan said, "We do not find the current balance appropriate for this stage; it needs to decrease a bit more. We will make our assessment after managing this process a little longer. KKM will continue for a while longer with a decreasing balance."

INFLATION TARGET AND FORECASTS

Stating that the 41.5 percent inflation forecast in the Medium-Term Program (OVP) is consistent with the Central Bank's target band, Karahan drew attention to the difficulty of making forecasts at the beginning of the year during periods of high inflation. 

He emphasized that the Central Bank is updating its inflation targets gradually and that headline inflation will continue to fall.

ENAG AND TÜİK METHODS ARE DIFFERENT 

Responding to lawmakers' criticisms regarding the differences in inflation rates announced by the ITO, ENAG, and TÜİK, Karahan stated that the methods of these indices are different. 

Karahan said, "These 3 indices do not measure the same thing. The ITO only collects data from Istanbul, TÜİK collects more general data, and their methods are different. ENAG, on the other hand, collects data online. Therefore, it is not correct to expect the same numbers."

The Central Bank Governor stated that the disinflation process began in June and that their goal from now on is to lower inflation. Karahan said, "Our job will not be finished until inflation reaches 5 percent. After that, the Central Bank's duty will be to ensure price stability."