CBRT President Erkan Reports Decline in Inflation Trend

CBRT President Dr. Erkan Addresses Istanbul Chamber of Industry

At the recent Istanbul Chamber of Industry (ISO) Professional Committees Joint Meeting, Dr. Hafize Gaye Erkan, President of the CBRT (Central Bank of the Republic of Turkey), commented on the state of the Turkish economy. Erkan highlighted several key points in her address, emphasizing the trends in inflation, the importance of financial stability, and the positive effects of monetary policy steps.

Erkan noted that there has been a decline in the underlying trend of inflation, with leading indicators in November showing a continued decrease. She also projected that inflation will decline in the second half of 2024 after reaching its peak. In addition, Erkan stressed the importance of investor confidence in Turkey, linking it to financial conditions and exchange rates.

The environment of trust and stability in the Turkish economy played a crucial role in preventing the rate of increase in inflation. Erkan attributed this to the decrease in the risk premium and the impact of fiscal and monetary reforms.

One of the key highlights of Erkan’s address was the fact that gross international reserves had exceeded 134 billion dollars, marking the highest level in the last 9 years. She also emphasized the positive developments in pricing behavior and the decrease in the underlying trend of inflation.

Erkan further discussed the steps taken to normalize personal loans and the allocation of 300 billion lira through the YTAK program. She emphasized the importance of the transition to TL for time deposits and pointed out the increase in investor confidence.

Looking ahead, Erkan projected that the real effects of the leading signals would be seen in 2024. She also expressed confidence in the capacity of real sector companies to manage their debts and announced that the end of monetary tightening was approaching. In this context, Erkan stressed the long-term benefits of achieving permanent price stability for the economy.

In conclusion, Erkan’s address at the ISO Professional Committees Joint Meeting provided valuable insights into the state of the Turkish economy, the trends in inflation, and the measures being taken to ensure financial stability and sustainable growth. Her remarks shed light on the CBRT’s approach to monetary policy and its impact on the overall economy.

 

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