households, taxes, wages and administered price adjustments, raised our end - 2023 inflation forecast by 7. 5 points and our end - 2024 inflation forecast up by 3. 6 points. the stronger - than - expected domestic demand pushed our year - end inflation forecasts up by 1. 3 points for 2023 and by 0. 4 points for 2024. lastly, the effects of forecast deviations and the change in forecasting approach added 10. 9 and 5. 9 points to our year - end forecasts for 2023 and 2024, respectively. the main reason for the upward revision in our inflation forecast stemming from the change in our forecasting approach has been the higher emphasis on the intermediate target in the path presented in the previous report, while our projections have been aligned with the technical forecasts of the central bank in view of the changing macroeconomic outlook. our inflation forecasts include our policy responses as well as their cumulative effects. our monetary policy response is oriented towards reducing the underlying trend of inflation. we carefully analyze monetary and financial conditions that affect underlying inflation. while gradually raising the policy rate, we will increase the functionality of market mechanisms through the simplification process in the macroprudential framework with a view to enabling market rates to become more aligned with inflation expectations. in addition, we have taken and will continue to take stabilizing steps that target inflation through selective credit tightening. through decisions on quantitative tightening, we will ensure a stable development in the turkish lira liquidity without generating excessiveness in exchange rates and domestic demand. we have initiated efforts to diversify turkish lira savings instruments and support the deepening of capital markets, which we will announce shortly. the central bank will make decisions based entirely on data and in complete coordination in line with the principles of confidence, stability and transparency. we will dynamically optimize the monetary tightening process by continuously measuring the effects of our decisions on inflation, markets, monetary and financial conditions. through a gradual and steady progress, our aim is to restore anchoring of expectations as well as predictability. 10 / 11 bis - central bankers'speeches as i conclude my remarks, i would like to thank all my colleagues once again who took part in the preparations of the entire report and the press conference, primarily the members of the monetary policy committee and the staff of the research and monetary policy department. we can now move on to the question and answer session. 11 / 11 bis - central bankers'speeches

in line with the high growth rate, an upward trend is observed in the current account deficit. today, the primary reason of the current account deficit is that investments grow faster than savings. in 2005, the current account deficit was recorded as usd billion 23. 1 billion and the ratio of current account deficit to national income was 6. 4 percent. in this ratio, the impact of energy prices, which is composed of the prices of crude oil, natural gas and coal, was 1. 4 points and the impact of the rise in crude oil prices alone was 1. 1 points. by april 2006, the current account deficit increased to usd 26. 8 billion. however, the question is not the level itself but its sustainability. when global trends are analyzed, it is observed that countries, which have succeeded in increasing financial and economic integration and reinforced macroeconomic stability, are able to sustain higher current account deficits compared to the past. the ratio of current account deficit to gdp is 11. 8 percent in bulgaria, 8. 7 percent in romania, 7. 9 percent in hungary and 7. 2 percent in the slovak republic 1. another point that i would like to highlight about the current account deficit is that sustainability of high current account deficit depends on the financing quality of the deficit. within this framework, i would like to present some figures on the maturity structure of capital inflows to turkey. in april 2006, net capital inflow excluding imf credits was usd 53. 6 billion. the share of direct foreign investments and long - term capital in financing of current account deficit increases rapidly. in april 2006, long - term capital inflow became usd 23. 2 billion and credit utilization of the non - banking private sector became usd 21. 1 billion. the primary source of the capital inflow was long - term capital and credit utilization of the non - banking sector ; 85 percent of which was long - term. making a projection, we expect this financing structure to continue. according to the “ foreign direct investment confidence index ”, which questions the countries ’ capacity to attract investments over a 13 year period and which is an indicator of foreign direct investments that will come to the country, turkey was the 13th most attractive foreign direct investment destination among 25 countries in imf, world economic forum, april 2006. 2005 2. according to the same survey again, turkey took the 7th place among european investors and was the 8th destination that international executives are most optimistic about the economic outlook. lastly, i would like to