Turkey’s new Central Bank chief says new hikes on table if inflation deepens
Turkey's new Central Bank chief, Fatih Karahan, signals that interest rate cuts are far off and that new hikes may be on the table, depending on the inflation outlook.
ANKARA — Turkey’s new Central Bank governor, Fatih Karahan, said on Thursday that the bank may resume monetary tightening if the country's inflation outlook deteriorates.
“We do not currently think that an additional interest rate hike is necessary. But we will, of course, review our decisions if the outlook deteriorates,” Karahan said, speaking at a televised press conference in Ankara.
The presser marked Karahan's public debut as the bank’s new chief. He took over the position following the resignation of his predecessor, Hafize Gaye Erkan, on Friday.
Karahan reiterated a pledge to maintain the current policy of monetary tightness. “We announced that we ended the rate hike cycle,” he said, “but it's too early to talk about cuts.”
