Fatih Karahan, the Governor of the Central Bank of the Republic of Turkey (TCMB), said the tight monetary policy stance to be maintained until price stability is achieved will strengthen the disinflation process through demand, exchange rate, and expectation channels.
Karahan made the remarks while meeting businesspeople and academics in Erzurum, Turkey, as part of the "Monetary Policy and Macroeconomic Outlook" meetings.
"Interest rate cuts can only be effective when inflation is under control," Karahan said.
Turkey's annual inflation in July, as stated by the central bank governor.
He noted that annual inflation in Turkey was 31.8 percent in July. He also said the year-end interest rate expectation for the US Federal Reserve (Fed) is 3.97 percent, and for the European Central Bank (ECB) is 2.59 percent.
Karahan reported that they conducted 132 face-to-face meetings with firms in Erzurum and neighboring provinces in 2026, and a total of 1,413 firm meetings over the last 5 years.
"Firm expectations regarding exports are progressing positively," he said.
He also stated that the annual change in production per worker in Turkey was 3.8 percent in the first quarter of 2026.
