Istanbul- Speaking at the Economy Meeting organized by the German-Turkish Chamber of Commerce and Industry, Central Bank Governor Fatih Karahan stated that there is no disturbance in the fundamental dynamics of the economy, saying, “We have taken and will take the necessary steps proactively within market rules.”

Karahan evaluated the effects of current developments on the economy in his speech, saying, “Recent developments have increased upward risks for inflation in April. Despite these developments, inflation expectations continue to remain above our disinflation policy. We will maintain our resolute stance in monetary policy. We have seen increases in the exchange rate by 3%, country risk premium by 71 basis points, 10-year benchmark bond yield by 4.5 points, and 1-month exchange rate volatility by 15 points. We have swiftly taken necessary measures to prevent these increases from disrupting the macroeconomic outlook. There is no disruption in the fundamental dynamics of the economy. In case of a significant deterioration in inflation, we will tighten monetary policy. In order to ensure the effective functioning of financial markets, we will continue to decisively use all monetary policy tools within market rules. We will take our steps to limit the macroeconomic impacts of the effects seen in the markets.”