Recent economic and financial developments in Turkey
What changed vs prior statement
- 01No material change in policy stance vs prior statement.
- 02Language essentially preserved across key paragraphs regarding inflation outlook.
- 03Vote split: No vote-record change.
From the original
Speech by Dr Fatih Karahan, Governor of the Central Bank of the Republic of Türkiye, at the briefing on the Inflation Report 2025-III, Istanbul, 13 August 2026.
Related speeches
4 itemsFatih Karahan: Recent economic and financial developments in Turkey
Central Bank of Turkey stays on hold, citing geopolitics
The Central Bank of Turkey (CBT) has opted to hold its key interest rate at 37% amid escalating geopolitical risks and rising inflation driven by surging oil prices, as highlighted in the recent research note. This decision demonstrates the bank's cautious approach against a backdrop of financial stability concerns that have emerged following renewed geopolitical tensions. Notably, the price of oil is nearing $100 per barrel, up from $70-$75 previously, pressing inflation risks higher ('Per the full note [source]...'). The market remains attuned to potential policy shifts, particularly regarding Turkey's liquidity tools, which could impact funding costs down the line, contingent on geopolitical developments.