Karahan: Demand for Turkish lira remains strong despite fund outflows

Speaking during a presentation in Bangkok on Türkiye's macroeconomic outlook and monetary policy, Karahan stated that the risk of the fund crisis spreading to broader financial markets had been contained through direct purchases and liquidity measures.

Karahan emphasized that underlying inflation has continued to decline despite elevated energy prices, although inflation expectations still require a cautious policy approach. He stated that monetary policy decisions would be made on a meeting-by-meeting basis, depending on the inflation outlook, and that the tight monetary policy stance would remain in place until price stability is achieved. He also signaled that monetary policy could be tightened further if inflation deviates significantly from interim targets.