Turkish Central Bank Governor Fatih Karahan on Wednesday said the bank would maintain its tight monetary policy until price stability is achieved. According to Reuters, He was speaking about Türkiye's monetary policy and macroeconomic outlook during a visit to Bangkok for a meeting of the World Bank. Here are some details from the governor's presentation: * Underlying inflation is moderating despite elevated energy prices * Soft demand dampens inflationary impulses from supply shocks * Proactive measures limit the possible contagion from trade-restricted funds * Turkish lira preference remains strong under tight monetary policy * The tight monetary policy stance, which will be maintained until price stability is achieved, will strengthen the disinflation process through demand, exchange rate, and expectation channels * The Monetary Policy Committee (MPC) will determine the policy rate by taking into account realized and expected inflation and its underlying trend in a way to ensure the tightness required by the projected disinflation path in line with the interim targets * Monetary policy decisions are made prudently on a meeting-by-meeting basis with a focus on the inflation outlook * Monetary policy stance will be tightened in case of a significant deviation in inflation outlook from the interim targets
