Analysis
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Statements attributed to Central Bank Governor Fatih Karahan during IMF and World Bank meetings in Bangkok sparked debate over foreign exchange policy, prompting a direct denial from a top market economist who attended the session.
Central Bank Governor Fatih Karahan said interest rate cuts can only be effective when inflation is under control.
Central Bank Governor Fatih Karahan has likened inflation to a virus, saying it becomes harder to eliminate the longer it lingers in the economy. “We are applying the right prescription,” he said. “We’ve achieved positive results so far, and we have no doubts about our ultimate goal. But the effect of the prescription varies from case to case.”
Central Bank Governor Fatih Karahan said that if the inflation target is missed, monetary policy will be tightened.
Central Bank Governor Fatih Karahan said inflation is expected to stand between 25% and 29% at the end of 2025, and between 13% and 19% in 2026.