Despite the geopolitical and global volatility in the period following the October Inflation Report, positive changes in financial indicators were observed in our country as a result of the CBRT's tight monetary policy implementation. Due to the decline in the country's risk premium, the Turkish lira decoupled positively from other emerging and emerging countries' currencies in November and December 2018; As a result, short- and medium-term market rates declined. In the third quarter of 2018, the slowdown in the loan market and the slowdown in the growth rate of loans became more apparent in the last quarter of 2018. By the end of 2018, the inflation rate was at 20.3. In this period, as a result of tight monetary policy implementation, the decline in oil and other commodity prices, tax cuts in some products in production and consumption activities and the weakening in domestic demand were effective in the decline in inflation. Economic activity slowed down in the third quarter of 2018 in line with the indicators in the October Inflation Report. In this period, volatility in financial markets and tightening in financial conditions caused consumption and investment-related contraction in domestic demand. Due to the favorable external demand conditions and the cumulative depreciation in the real exchange rate, the increase in net exports was driven by the slowdown in domestic demand driven growth. Indicators related to this period had a positive effect on the decline in demand-driven inflation
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