First statement from Central Bank Governor Fatih Karahan after the elections

Central Bank of the Republic of Turkey (TCMB) Governor Fatih Karahan met with the Board of Directors of the Banks Association of Turkey (TBB).

In a written press release regarding the meeting, it was noted that the agenda of the regular meeting held at the TBB consisted of the state of the banking sector, the inflation outlook, and recent developments in monetary policy.

"DISINFLATION WILL BE ESTABLISHED IN THE SECOND HALF OF 2024"

In the statement, which included his remarks at the meeting, TCMB Governor Karahan announced that disinflation would be established in the second half of 2024.

Touching upon the technical details of the functionality of the market mechanism and practices aimed at macro-financial stability, TCMB Governor Karahan stated, "We anticipate that our steps toward disinflation will be reflected in financial conditions, demand, and pricing behaviors. We will maintain tight monetary conditions that will significantly and permanently reduce the underlying trend of monthly inflation. Our determined stance in monetary policy will ensure that we successfully reach our targeted disinflation path."

"COMMUNICATION WITH THE TCMB IS AT A VERY GOOD LEVEL"

TBB Board Chairman Alpaslan Çakar stated that their communication with the TCMB is at a very good level and expressed their satisfaction with today's productive and constructive meeting.

TBB Chairman Çakar stated that they listened to Karahan's assessments regarding monetary policy practices and provided him and his team with up-to-date information on sectoral developments.

Furthermore, expressing their support for the fight against inflation, which is critical for increasing social welfare and achieving inclusive and sustainable growth, Çakar noted that their expectations regarding the future of the Turkish economy remain positive.