Türkiye’s disinflation process progresses in line with economic goals of soft landing

(MENAFN) Türkiye’s disinflation process is progressing in line with the country’s broader economic goals of achieving a soft landing, following a year of tight monetary policy aimed at combating inflation. As the year draws to a close, attention is focused on the Central Bank’s upcoming policy rate decisions and its outlook for 2025.

Zumrut Imamoglu, an economist at Bank of America Merrill Lynch, spoke to Anadolu, noting that the bank had revised its year-end inflation projections from 42 percent to 44-45 percent. This revision was primarily driven by rising food prices, though Imamoglu stressed that it wasn’t a major adjustment. She indicated that the overall inflation trajectory is on the right path and highlighted the Central Bank’s gradual tightening cycle, which has not caused significant disruptions to the economy, though there is still a waiting period for the full effects to materialize.

Despite reports indicating a scenario technically resembling a recession, Imamoglu explained that the Turkish economy is not experiencing a severe crisis or recession but rather a period of stagnation. She emphasized that the economic growth figures are relatively flat, indicating that the economy is managing the challenges without a drastic downturn.

Imamoglu further reinforced that Türkiye is indeed experiencing a disinflationary process, albeit slightly slower than the Central Bank’s initial projections. She suggested that there is no reason for major disappointment at this stage, as the inflation trajectory remains aligned with the goal of a soft landing. The current economic environment reflects steady progress, with the focus on ensuring that the disinflation process continues without destabilizing the economy.

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