Karahan says price stability remains Turkey's core central bank priority
Turkish central bank governor Fatih Karahan told Anadolu Ajansı that price stability remains the institution's core priority for sustainable growth. He said the progress already made on disinflation "matters" and must be preserved. The comments land amid renewed debate over recent inflation data and year-end expectations.
Turkish central bank governor Fatih Karahan reiterated to Anadolu Ajansı that price stability remains the institution's core priority for sustainable growth. "We value the distance we have covered in pursuit of price stability," he said, stressing that disinflation gains made in recent months must be preserved.
A recent central bank survey showed market participants' year-end inflation expectation rising to 26 percent. Karahan said the broader rebalancing of the economy continues and that monetary policy will maintain its tight stance. The week's budget data, released earlier, was said to be running in line with official targets.
Housing rent increases, the wage cycle and renewed upward pressure on energy prices remain the principal challenges to the disinflation timetable. The Monetary Policy Committee has signalled that the current tone will be carried into the June meeting. Karahan's remarks land in a week when the dollar-lira pair traded in a narrow band, while bond yields drifted lower.
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