Fatih Karahan

Eyes are now on the Central Bank after inflation in September came in above expectations, while Governor Fatih Karahan has reiterated that the bank will maintain its tight stance.

Last month, consumer prices rose 2.97 percent, accelerating from 2.47 percent in August. The September print was also above the market forecast of 2.2 percent.

Türkiye's economy is expected to grow by 3.5 percent this year before the GDP expansion accelerates to 4 percent in 2025 and 4.5 percent in 2026, according to the government's medium-term economic program revealed on Sept. 5.

The Central Bank has kept its year-end inflation forecasts for 2024, 2025 and 2026 unchanged, vowing to maintain its cautious stance in monetary policy.

The bank projects that inflation will fall to 38 percent at the end of 2024, while its forecasts for 2025 and 2026 are 14 percent and 9 percent, respectively.

Investors and analysts will carefully listen to what the Central Bank has to say about inflation dynamics and the course of its monetary policy going forward when Governor Fatih Karahan unveils the bank's quarterly Inflation Report on Aug. 8.

The report will include the bank's inflation forecasts for this year and next.

The Central Bank will maintain its tight policy stance until price stability is achieved, Governor Fatih Karahan has said.

Speaking at a planning and budget commission of the parliament, Karahan reiterated that the bank will not allow a permanent deterioration of the inflation outlook.

The Banking Regulation and Supervision Agency (BDDK) has allowed the establishment of three new banks.

According to the decision published in the Official Gazette, as per BDDK's decision, two investment banks, namely Marin Yatırım Bankası and Aytemiz Yatırım Bankası, and one digital participation bank, Adil Katılım Bankası, will be established.

Tight monetary policy will continue, Central Bank Governor Fatih Karahan has said, a day after the bank kept its policy rate, the one-week repo auction rate, unchanged at 50 percent.

Speaking at the Arab Banking Summit, Karahan reiterated that the headline inflation is expected to decline sharply in June.

The Central Bank's Monetary Policy Committee (MPC) will meet for a fifth time this year to decide on the one-week repo auction rate.

Economists widely expect the bank to keep the key interest rate unchanged at 50 percent on May 23 as it did at the MPC meeting in April.

A series of measures designed to boost public savings will be announced on May 13, Treasury and Finance Minister Mehmet Şimşek has said, without providing other details.

Şimşek has been saying for some time that the authorities have been working on steps to be taken to increase public savings.

Türkiye's Central Bank has lifted its inflation forecast from a previous 36 percent to 38 percent for the end of 2024, while Governor Fatih Karahan has vowed that "they will definitely not allow a permanent deterioration in the inflation outlook."