tcmb decision, 2004-12-20
The risks that have been underlined include: (i) domestic demand and labor costs may not help reduce inflation as much as they did in the past three years, (ii) the high increase in raw material costs and wholesale prices might start to exert pressure on inflation after some time, (iii) uncertainties about the launch date of membership negotiations with the European Union may lead to fluctuations in the financial markets, (iv) concerns over the sustainability of the current program, (v) price rigidity in the services sector, especially in rents, (vi) the likelihood of adverse developments in international liquidity conditions.
Sentiment: neutral
Topic: mp_inflation