2023-11-02 10:07:18
Hafize Gaye Erkan, Governor of the Central Bank of the Republic of Turkey (CBRT), held an information meeting at the CBRT Administration Center to introduce the Inflation Report 2023-IV.
Erkan stated the following in his statement:
“We updated the year-end inflation forecast midpoints to 65 percent for 2023, 36 percent for 2024 and 14 percent for 2025. Although we have updated our forecasts upwards, we evaluate that there will be no change in the start time, speed and course of disinflation.
We are determined to establish disinflation in 2024 by continuing to weaken the underlying trend of inflation with the cumulative effects of our monetary tightening steps.
While TL deposits increased by 970 billion liras in just 8 weeks, exchange rate protected deposits decreased by 300 billion liras and foreign currency deposits decreased by 3.9 billion dollars.
(Steps to increase the share of TL deposits) With the withdrawal of an additional 350 billion lira of liquidity from the system, total sterilization will exceed 1 trillion TL.
The impact of tax updates on inflation was 2.5 points.
Although the strong trend in demand continues, it is losing momentum.
Normalization in the supply-demand balance has started gradually.
We expect the balancing of supply and demand to continue as the cumulative effects of monetary tightening come into play.
The deterioration in inflation expectations slowed down.
The communication policy we have developed with the determination and consistency in monetary policy aims to anchor inflation expectations.
As a positive reflection of our monetary policy strategy, retail loans have slowed down significantly. The commercial credit structure has reached a balanced and continuous structure.
We are determined to establish disinflation in 2024 by continuing to weaken the underlying trend of inflation with the cumulative effects of our monetary tightening steps.
“Thanks to our policy stance, the volatility in the exchange rate has decreased from 60 percent in May to 10 percent now.”
Details to come…
#CBRT #increased #inflation #forecast #Kıbrıs #Newspaper