Turkish Central Bank Reaffirms Focus on Price Stability

(MENAFN) The Central Bank of the Republic of Türkiye has reiterated that maintaining price stability remains its primary objective, stressing that ongoing international conflicts, while impactful, do not alter its monetary policy priorities, according to reports.

Speaking at a financial summit in Istanbul, the bank’s governor, Fatih Karahan, highlighted that the global economy is currently operating in an environment shaped by geopolitical tensions and rising uncertainty. He noted that such conditions continue to influence inflation dynamics worldwide.

Karahan pointed out that increases in energy costs have been a key factor worsening inflation pressures on a global scale, with Türkiye also feeling the effects through both inflation trends and external economic balances. He added that recent data for April already reflected the economic impact of ongoing conflicts, particularly through energy-related price increases.

He further stated that short-term inflationary pressure linked to energy markets is expected to persist. However, he emphasized that the medium-term inflation outlook would depend on how monetary policy responds to these developments, with decisions being made cautiously in light of evolving conditions.

Reaffirming the bank’s stance, Karahan said that ensuring price stability remains the institution’s central mandate, and that geopolitical developments have not changed this commitment despite their influence on the disinflation process.

He also warned that recent global tensions have pushed crude oil and natural gas prices above pre-conflict levels, reinforcing inflationary risks in the energy sector and broader economy.

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