Prof. Dr. Fund Crisis and Economy Assessment by Hakan Kara

Former Chief Economist of the Central Bank of the Republic of Turkey (CBRT) Prof. Dr. Hakan Kara made evaluations about the possible effects of the fund crisis on the economy. Kara stated that he expects a slowdown in demand after the crisis, that this will reduce the pressure on inflation and that interest rate cuts will begin in October.

In his post on his social media account, Kara stated that there has been no change in his previously expressed expectations and said that the market is also approaching this view.

'I KEEP MY PREDICTIONS THE SAME PREDICTIONS'

Kara reminded that in his first assessment after the fund crisis, he predicted that demand would slow down and this would restrain inflation.

Kara said, "In my post right after the fund crisis, I wrote that demand would slow down, this would restrain inflation, and interest rate cuts would begin in October. I keep my predictions the same. The market is also converging to this view."

REDUCED THE GROWTH FORECAST TO 2.3 PERCENT

Kara stated that his assessment of the effects of the fund crisis on the economy was also reflected in the growth expectation.

Reminding that in his post on September 30, he predicted that the slowdown in the economy would become more evident through liquidity, asset and trust channels, Kara stated that the developments experienced in the past period strengthened this view.

Kara stated that he reduced his growth forecast from 2.8 percent to 2.3 percent and made the following statements:

“In my comment right after the fund crisis, I predicted that the slowdown in the economy would become evident through the effects of liquidity, assets and confidence.

Developments over time have gradually strengthened this view.

"I am reducing my growth forecast for this year's total from 2.8 percent to 2.3 percent."