Increasing exports will support economic growth, while a decline in private domestic demand will facilitate a further shrinkage in the current account deficit, said the head of the Turkish central bank, Erdem Başçı
ISTANBUL — Attending International Monetary Fund spring meetings in Washington, Erdem Başçı, the governor of the central bank of the Republic of Turkey, made a presentation about "Economic Appearance and Monetary Policy" at the JP Morgan Investors Conference.
In his presentation, Başçı noted that consumer credit usage slowed down due to tight monetary policy, macro precautionary measures and slow capital flows. Başçı stated that the positive effects of monetary tightening on inflation could be observed with a slight delay and inflation could reach a peak point in May due to the base effect.
While exports will support economic growth, private domestic demand may be on the decline, Başçı said, emphasizing that significant recovery in current account deficits will be observed in 2014.