Fatih Karahan, the Governor of the Central Bank, stated that there is no disturbance in the fundamental dynamics of the economy, saying, “We have taken and will take the necessary steps proactively within market rules.”

Speaking at the Economy Summit organized by the German-Turkish Chamber of Commerce and Industry in Istanbul, Governor Fatih Karahan said, “We have taken and will take the necessary steps proactively within market rules. We will not allow demand conditions to disrupt the disinflation process.”

Assessing the effects of current developments on the economy in his speech, Karahan said, “Recent developments have increased upward risks for inflation in April. Despite these developments, inflation expectations continue to remain above our disinflation policy. We will maintain our resolute stance in monetary policy. Increases of 3% in the exchange rate, 71 basis points in country risk premium, 4.5 points in the 10-year benchmark bond yield, and 15 points in 1-month exchange rate volatility have been observed. We have swiftly taken necessary measures to ensure that these increases do not disrupt the macroeconomic outlook. There is no disturbance in the fundamental dynamics of the economy. In case of a significant deterioration in inflation, we will tighten monetary policy. To ensure the effective functioning of financial markets, we will continue to decisively use all monetary policy tools within market rules. We will take our steps to limit the macroeconomic impacts of the effects that occur in the markets.”