(Bloomberg) -- Turkish central bank Governor Fatih Karahan promised to do “whatever it takes” to curb inflation and signaled further monetary tightening if needed, according to people with direct knowledge of the matter. 

Speaking earlier this week at an event organized by JPMorgan Chase & Co. in Washington, Karahan echoed former European Central Bank chief Mario Draghi’s famous pledge to save the euro in 2012 as he emphasized the central bank stands ready to do more, despite already exceeding market expectations on tightening, the people said. They requested anonymity because the event was closed to the press.

The comments build on recent attempts by Karahan to reassure the market the central bank is serious about tackling inflation, which is on track to exceed 70% by May. The governor has said publicly the bank is ready to do more to “regain credibility” on its fight against price growth. 

The central bank didn’t immediately respond to a request for comment. 

Raising the interest rate and “normalizing” monetary policy have been at the center of an overhaul in the bank’s approach that began last June. The new policies are aimed at reversing the inflation crisis sparked by President Recep Tayyip Erdogan’s push for ultra-low borrowing costs to fuel economic growth.

Policymakers appointed as part of that overhaul have been trying to rein in inflation and restore investor confidence. Since June, the benchmark interest rate has been raised by more than 40 percentage points to 50%. 

Still, investors have remained concerned about how much freedom Erdogan, who directly meddled in policy in previous years, will grant the central bank. 

The president was once a self-declared enemy of high borrowing costs and in the past has fired governors for not toeing the line. Since his reelection last May, he’s dialed down his public interventions into policy and endorsed the program led by his long-time confidante, Treasury and Finance Minister Mehmet Simsek. 

Simsek and Karahan, who are both at the World Bank and International Monetary Fund spring meetings in Washington this week, have tried to soothe investor concerns that tight policy might not last. 

Read more: Turkish Disinflation Goal Means Reserve Buildup May Need to Wait

The governor said at JPMorgan’s event that the central bank would pursue additional tightening if it foresaw a significant and persistent deterioration in the inflation outlook, the people said. 

The central bank is due to hold its next rate-setting meeting on April 25 with some analysts already penciling in another hike. Rate setters surprised the market last month with a 500 basis-point increase in the benchmark.

According to one person, the governor described the central bank’s year-end inflation figures as targets — not just forecasts — around which the bank calibrates its monetary policy decisions. 

Currently, the central bank sees year-end inflation at 36%, and falling to 14% at the end of 2025. Policymakers are slated to present fresh projections next month. Officials see Turkish headline inflation peaking at around 75% in the coming months.

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