Central Bank Governor Fatih Karahan said that if the inflation target is missed, monetary policy will be tightened.
Meeting with investors in New York, Karahan stated that the tight monetary policy stance would be maintained until price stability is achieved, adding that this process would contribute to disinflation through demand, exchange rate, and expectation channels.
He also said that the macroeconomic framework projected in the Medium-Term Program would support the disinflation process.
Karahan stated that steps regarding the policy rate would be taken considering inflation developments, main trends, and expectations, noting that decisions would be made in line with intermediate targets to ensure the tightness required for disinflation.
He said that monetary policy would be tightened further if the inflation outlook diverged significantly from intermediate targets.
