In his speech at World Investor Week, he said that the deterioration in inflation expectations was limited to the effect of the implemented monetary policy.
Stating that the share of TL deposits increased to 61 percent, Karahan stated that the amount of funds released during the fund crisis was largely directed towards TL deposits.
Highlights from Karahan’s speech are as follows:
“Since July, we have seen a slowdown in the main trend of inflation again. The fact that the main trend is below inflation indicates that disinflation may accelerate in the coming period if the supply-side pressures fade. Annual inflation in the services group decreased by 7 points compared to last year, falling to 37 percent. Indicators point to a weak course in domestic demand.
Rent inflation indicates that inertia has decreased in recent months. Inflation expectations require maintaining a cautious stance. “Domestic residents’ preference for the Turkish lira continues to remain strong.”
