CBRT Chairman Şahap Kavcıoğlu made statements regarding the inflation report published today. In the statement made, he stated that the inflation rate in 2023 will be between 17.8 percent and 26.9 percent at the end of the year with a 70 percent probability, and between 4.0 percent and 13.7 percent by the end of 2024. Kavcıoğlu talked about the record deficit in energy and foreign trade balance, especially in the European Union, where the most important commercial partnerships are, as the Russia-Ukraine War in 2022 caused serious increases in energy and commodity prices. He shared that the normalization process has gained momentum with the recent retreats in energy prices.

• The CBRT removed the upper interest limit in the Currency Protected Deposit (CPD) system. In addition to the policy rate of 9 percent until this decision, banks could pay a maximum of 3 percent, or 12 percent, in addition to the policy rate. In this case, the TL deposit interest, which exceeded 30 percent, remained at a very low level. CPD accounts, which have started to decline recently, are expected to gain popularity again with this decision.
• GDP in the US for the 4th quarter, which we are watching today, grew by 2.9%, above the expectation of 2.6%. Durable Goods Orders also came in at 5.6%, higher than expected 2.6%. Weekly Claims for Unemployment Benefit, on the other hand, were 186,000 less than expected. The data was expected to be 205 thousand people.