We make all our regulations and decisions accordingly. Distinguished Representatives of the Business World, Supply constraints that were triggered by the pandemic and gradually intensified due to geopolitical risks, and heightened volatilities in global financial conditions caused negative supply shocks, pushing global inflation to historic highs. The main determinants of the inflation we face are strong and persistent supply shocks, exchange rate developments and the resulting deterioration in pricing behavior. With the decisions we take, we aim to ensure a permanent decline in inflation as soon as possible. Accordingly, together with the interest rate policy, we have been effectively making use of the policy mix composed of liquidity, collateral, reserve requirements and management of international reserves. In the context of our integrated policy framework, we will continue to use our instruments with a liraization perspective. Additionally, while making our monetary policy decisions, we pay regard to the creation of financial conditions that will help increase investments and production, and support the sustainable current account balance objective. Our investment and export-targeted loan programs that will lead the sector, as well as our macroprudential policies, are also supportive of this process. While concluding my remarks, I would like to extend my thanks to you, as the representatives of the Turkish industry. The contributions of our industrialists will be of significant importance in achieving the current account surplus on the back of investment, employment, production, export gains that will lead our economy to sustainable price stability and development goals.

ahap Kavcolu: Recent economic and financial developments in Turkey Speech by Mr ahap Kavcolu, Governor of the Central Bank of the Republic of Turkey, at the Istanbul Chamber of Industry Meeting, Istanbul, 29 July 2022. *** Distinguished Members of the Istanbul Chamber of Industry, I would like to thank you for your invitation to the regular July meeting of your Assembly, which is among the leading representative councils of our country's industrial sector with its history of 70 years and more than twenty thousand members. I am pleased to meet with you here today. I will start my speech by giving a brief account of the developments regarding the macroeconomic outlook. Then, I will talk about the structural transformation that our country is going through. After sharing with you the Central Bank's contributions to this important transformation, I will leave the floor to you. Esteemed Participants, Geopolitical risks that increased in the first half of the year, and energy problems, supply constraints, and supply chain disruptions due to the lingering effects of the pandemic have led to negative consequences on a global scale. However, recently, there has been a partial improvement in energy and commodity prices as well as in supply conditions and lead times. In this context, lead times in emerging economies have improved considerably in recent months, and significantly converged to their normal levels. Meanwhile, lead times in advanced economies have remained elevated despite some decline.