Central Bank Governor Fatih Karahan said that both short-term indicators and the medium-term outlook confirm that disinflation is ongoing and will continue.
Speaking at the Türkiye Exporters Assembly (TİM) headquarters in Istanbul during a presentation titled “Monetary Policy and Macroeconomic Outlook,” Karahan emphasized that the bank will maintain its tight monetary stance to anchor expectations permanently.
In December 2025, the Consumer Price Index (CPI) dropped to 30.89 percent, marking the lowest annual level in 49 months.
Karahan noted that since May 2024, inflation has shown a broad-based decline, though housing rents and education costs have kept service inflation elevated. He added that rent inflation is expected to continue easing, while recent adjustments to private school fees will contribute to disinflation in the education sector.
Highlighting a slowdown in underlying trends, Karahan pointed out that cost pressures have diminished and both consumer and business inflation expectations are now on a downward trajectory.
He explained that the Monetary Policy Committee (MPC) will determine policy rate decisions in line with inflation outcomes, underlying trends and expectations, ensuring the necessary level of tightness to meet interim targets. “The size of the steps is reviewed with a cautious, meeting-by-meeting approach, focused on the inflation outlook,” he said.
Karahan stressed that if inflation deviates significantly from interim targets, monetary policy will be further tightened to safeguard the disinflation process.
