Central Bank Governor Fatih Karahan's Statement on Disinflation in New York
CBRT Governor Fatih Karahan stated at a conference in New York that the disinflation process continues despite challenging supply conditions and that the slowdown in domestic demand persists.
Central Bank of the Republic of Turkey Governor Fatih Karahan emphasized during his presentation at the 19th Turkey Investment Conference in New York that the disinflation process continues resolutely despite supply shocks and increases in energy prices.
New York Presentation and General Outlook
Central Bank of the Republic of Turkey Governor Fatih Karahan delivered a presentation titled "Inflation and Macroeconomic Outlook" within the scope of the 19th Turkey Investment Conference organized in New York by the DEİK Turkey-US Business Council.
Services Inflation and Rent Developments
While stickiness in services inflation persists, it was noted that a significant improvement has been recorded in rents, which are among the items that typically exhibit greater stickiness.
While rental inflation and the slowdown in domestic demand supported the disinflation process, developments in transportation services offset part of this improvement.
Domestic Demand and Growth Dynamics
It was stated that economic growth has decelerated under the impact of the weakness in domestic demand, but all data show that the disinflation process continues despite challenging conditions.
Foreign Trade and Current Account Balance
It was conveyed that Turkey's foreign trade balance has shown improvement and strong travel revenues have supported this outlook.
It was stated that the slowdown in domestic demand and the strong trend in exports have directly contributed to positive developments in the current account balance.
Monetary Policy and Reserve Status
It was reported that tightening steps have been taken in monetary policy to limit inflation risks and a cautious approach is being maintained.
It was recorded that domestic residents' demand for the Turkish lira remains strong and international reserve buffers continue to maintain their robust appearance.