Statements on Inflation and Economic Outlook from CBRT Governor Fatih Karahan
Central Bank Governor Fatih Karahan stated at an investor meeting in Istanbul that recent data points to a slowdown in the underlying trend of inflation.
Central Bank of the Republic of Turkey Governor Fatih Karahan stated in his presentation at the Citibank Turkey Investor Day held in Istanbul that recent data and leading indicators clearly show a slowdown in the underlying trend of inflation.
Annual Inflation and the Decline in August
Central Bank of the Republic of Turkey Governor Fatih Karahan stated that annual inflation declined to 31.5 percent in August.
Supply Shocks and Transportation Services
Expressing that supply shocks pushed headline inflation upward, Karahan noted that transportation and communication services also slowed down the disinflation process.
Disinflation Room in Rents
Stating that leading indicators point to additional room for disinflation in rents, Karahan emphasized that core goods inflation maintains its moderate course.
Economic Activity and Growth Rate
Karahan drew attention to the fact that, despite the slowdown in economic activity, quarterly growth gained momentum in the second quarter.
Current Account Deficit and External Balance
Emphasizing that the foreign trade balance showed further improvement in the third quarter, Fatih Karahan said tourism revenues continue their strong course.
Tight Monetary Policy Stance
It was stated that the tight monetary policy stance to be maintained until price stability is achieved will strengthen the disinflation process through demand, exchange rate, and expectation channels.