Türkiye's central bank chief says measures taken during market turmoil support tightening stance

Türkiye's central bank Governor Fatih Karahan said on Wednesday that the central bank's measures last week supported a tight monetary policy stance and that further steps would be taken proactively amid market turmoil over the arrest of Istanbul's mayor.

Callahan said in a speech in Istanbul that the core dynamics of the economy had not been disrupted during this period and the central bank would maintain a tight stance to achieve its price stability target and continue to use all tools to ensure effective market functioning.

He also said deflation was continuing but forecasts were higher than expected, adding that the central bank's foreign exchange reserves were "very strong" despite market interventions last week to support the lira.