Fatih Karahan, the new president of the Central Bank (CBRT), appeared in front of the public for the first time after his appointment last week and answered the questions of the newspapers.
After Karahan announced in the first inflation report of the year, which he announced to the public today, that the end-2024 expectation is 36 percent, the end-2025 expectation is 14 percent and the end-2026 expectation is 9 percent, possible increases along with inflation came to the fore.
Karahan: “In your presentation, you drew particular attention to the month of January regarding the increase in inflation, but we have a local election ahead of us. There has been no increase in energy prices for a long time. It is emphasized that these increases have been postponed until after the election. How will an increase in natural gas and electricity prices, especially after the election, affect inflation? You “You expect a decrease after May, but what will be the impact of the increases postponed until after the election?” The question was posed.
Karahan responded as follows:
“When we make our inflation forecasts, we make a projection for the increases that may occur in many items. The prominent factor here will be energy. A regulation is expected to be made in electricity and natural gas. In this context, we used the OVP (medium-term program). OVP is a very binding program. “We think that certain assumptions made there will come true, and while making our predictions, we reflected that there will be some updates in prices.”
REGULATORY MESSAGE FOR CREDIT CARDS
Answering the question about credit card expenditures, Karahan said:
“There was an increase in credit card expenditures in December. We noted this, we are aware of it. It is not yet clear whether this is temporary or not. It was expected that the minimum wage would increase. For this reason, some expenses may have been brought forward, but regardless of this, we think that regulations should be made on credit cards. There are a few things on this subject. “We have an idea, our work continues. When it reaches a certain stage, we will share it with the public.”