ANKARA  - Turkish ‍Central Bank Governor Fatih Karahan said on Friday that short-term ​indicators and the medium-term outlook show that disinflation will continue after the bank lowered its ⁠policy interest rate by 150 basis points.

Tight monetary policy will ensure ⁠that this disinflation continues, ‌Karahan said.

Thursday's rate cut to 38%, which was at the dovish end of expectations, followed data in the last ⁠two months suggesting that disinflation is back on track after summer price pressure.

"Both short-term indications and the medium-term outlook show that disinflation is continuing and will continue," Karahan said at a TUSIAD business ⁠association event in Ankara.

High ​growth in private consumption had slowed and household inflation expectations will continue to decline, he ‍said, adding that policy will be tightened if the inflation outlook deviates from interim targets.

Data ​this month showed that consumer prices rose 31.1% year-on-year in November, up 0.87% monthly. This reading was below expectations, as in October, marking a turnaround after readings exceeded forecasts in August and September.

After a policy reversal earlier this year due to political turmoil, Turkey's rate-cutting cycle resumed in July with a 300-basis-point move, followed by cuts of 250 points and then 100 in October amid rising food prices.

The central bank has pledged to reach ⁠its 16% interim inflation target by end-2026, ‌even as markets are sceptical. The bank projects 2026 inflation between 13% and 19%.

TUSIAD President Orhan Turan, speaking ahead of Karahan at the conference, ‌said single-digit ⁠inflation was critical for businesses to focus on long-term investment.

(Additional reporting by Ezgi ⁠Erkoyun; Writing by Daren Butler; Editing by Jonathan Spicer)