TCMB expects growth below potential

CBRT

In the latest inflation report for the year, the Central Bank of the Republic of Turkey (TCMB) revising its output gap projections into the negative indicates an expectation that the growth in 2024 might be lower than what was initially forecasted in the Medium-Term Program. TCMB President Hafize Gaye Erkan mentioned that central banks tend to be more conservative in their growth projections compared to governments due to the measures they take in combating inflation. He highlighted that such a situation is normal. Economists, on the other hand, interpreted this revision as a reaffirmation of TCMB’s commitment to combating inflation at the expense of giving up on growth.

Source BloombergHT

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