Karahan: The Savings Package to Combat Inflation

Fatih Karahan, the Governor of the Central Bank of the Republic of Turkey, has expressed confidence in the country’s ability to combat inflation in the coming months. Speaking to reporters, Karahan emphasized the disinflationary conditions expected in the second half of the year and reaffirmed the bank’s long-term inflation target of 5 percent.

Karahan acknowledged that there were some differences between market forecasts and the bank’s projections, particularly in light of the recent spike in inflation rates. Despite this, he assured that the bank would do everything in its power to bring inflation down and maintain a tight monetary policy.

“We are not here to be popular, but to do our job, and that is to reduce inflation,” Karahan stated. “We are ready to take action to achieve this goal.”

The Governor also commented on the savings package announced by the government, noting that the spending-related measures included in the package would help address inflationary pressures. He highlighted the Treasury’s role in supporting these measures and reiterated the importance of reducing inflation for the overall health of the economy.

While discussing the potential impact of artificial intelligence on the economy, Karahan refrained from making definitive statements, emphasizing the need for further analysis and evaluation.

Overall, Karahan’s remarks underscore the Central Bank’s commitment to fighting inflation and maintaining stability in the country’s economy. The government’s savings package, coupled with the bank’s efforts, are expected to provide much-needed relief in the face of rising inflation rates.

 

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