After Central Bank Governor Fatih Karahan announced that the year-end inflation forecast had increased to 44 percent, President Recep Tayyip Erdoğan said that inflation “will now be in constant decline” and drew attention. Erdoğan said, “Hopefully, inflation will decrease along with interest rates. Don’t worry about this. This is my logic in economics. “This is the information I received and learned as an economist,” he said.
President Erdoğan made a statement to journalists after his visits to Bishkek and Budapest. Arguing that inflation will be off the agenda next year, Erdogan said, “Inflation will now be in constant decline. No one should doubt this. We will all see these declines in inflation in the last two months. No one should doubt this. As of now, this sign of descent is showing itself. Without any hesitation, hopefully we will see this decrease in inflation. You know my approach. Hopefully, inflation will decrease along with interest rates. Don’t worry about this. This is my logic in economics. This is the information I received and learned as an economist. Remember, when Mehmet Bey was the Minister of Finance, the interest rate was at the level of four-odd. Inflation also dropped to 5.6. Now, hopefully, we will bring this to the agenda of our country again. “This positive trend will continue with the implementation of a stable fiscal policy and structural reforms,” he said.
“The pace of improvement in expectations is not at the level we desire.”
Fatih Karahan, Governor of the Central Bank of the Republic of Turkey (CBRT), announced that the rates were revised upward in anticipation of inflation.
Karahan, who shared the last inflation report of the year with the public at the Inflation Report 2024-IV Information Meeting, announced that the 2024 year-end inflation forecast increased to 44 percent.
President Erdoğan and Macron together in Hungary
CBRT increased its year-end inflation forecast from 38 percent in the previous report to 44 percent, and its year-end inflation forecast for 2025 from 14 percent to 21 percent. The inflation forecast for the end of 2026 was increased to 12 percent.
Stating that the pace of improvement in expectations is not yet at the desired levels, Karahan said, “We have updated the 2024 and 2025 inflation forecasts upwards to 44 percent and 21 percent. We predict that it will decrease to 12 percent by the end of 2026. The 2024 forecast range was increased from the 34-42 percent band to the 42-46 percent band. “The forecast range for 2025 has been increased from 7-21 percent to 16-26 percent,” he said.
Source: News Center
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