"Disinflation will gain momentum again"

Central Bank Governor Fatih Karahan said at the summit held within the scope of World Investor Week, "As the impact of the shocks fades, we think that disinflation will gain momentum again with our tight monetary policy stance."

Central Bank Governor Fatih Karahan spoke at the summit organized within the scope of World Investor Week.

Highlights from CBRT President Karahan's speech are as follows:

As the impact of the shocks fades, we think that disinflation will gain momentum again with our tight monetary policy stance.

We will continue to use all our tools determinedly in line with the price stability target.

Investment growth was limited in the 1988-2003 period, when high inflation prevailed, and growth increased to 7.8 in 2014-19, when there was a tight cost policy.

During the period when inflation increased again with COVID, investment growth fell behind the previous period, and we see that investments are strengthening again in 2025.

Annual inflation decreased to 29.7 in September, data show that we have made significant progress in disinflation. Geopolitical developments, especially energy, slowed down the disinflation process.

Due to the effect of the war, the 3-month averages showed an increase in the main trend in March - June. Afterwards, we see a decrease.

Energy prices stand out in the inflation trend in 2026. When we look at the subgroups as of September, annual inflation decreased in all groups except the energy group.

Indicators confirm the weak course of domestic demand.

The limited increase in card spending confirms the decrease in domestic demand.

Inflation expectations require maintaining a cautious stance.

Domestic residents' TL preference continues to remain strong. Fluctuations can be observed in the TL share.

There were outflows in PPF and similar funds, but they largely focused on deposits. With the acceleration of deposit inflows, the share of TL deposits is over 61 percent.

Current consumption decreased in the second quarter despite adverse external conditions.

Some of the post-war decline in reserves has been compensated.