Türkiye's newly appointed central bank chief said on Tuesday that the monetary authority's resolute stance would lead to the desired disinflation path.
Governor Fatih Karahan's remarks came during a meeting with the management of the Banking Association of Türkiye (TBB).
"We anticipate that our steps toward disinflation will be reflected in financial conditions, demand and pricing behaviors," a TBB statement cited Karahan as saying.
"We will maintain tight monetary conditions that will significantly and permanently lower the core trend of monthly inflation," the governor said.
The central bank, which had already hiked rates by 3,650 basis points since last summer before pausing its tightening, decided to hike the benchmark rate by another 500 basis points on March 21 due to a deterioration in the inflation outlook.
It said the policy would be further tightened "in case a significant and persistent deterioration in inflation is foreseen."
Inflation rose to 67% in February and is anticipated to have approached 70% in March, according to surveys.
The central bank has recently moved to tighten policy, including action on reserve requirements, prompting some banks to either reduce loan limits or even stop offering loans. The bank also raised the maximum interest rate on credit card cash withdrawals.
In the minutes of its last rate-setting meeting, it said leading indicators point to a slowdown in the underlying trend of inflation in March. It added that price increases in food, services and core goods would impact last month's inflation print.
"Our results stance in monetary policy will lead us successfully to the targeted path of disinflation," Karahan said on Tuesday.
He reiterated expectations for a significant downward trend in inflation as of the second half of this year.
According to the TBB statement, the meeting agenda included discussions on "the condition of the banking sector, the inflation outlook and recent developments in monetary policy."
