Turkey to tame inflation

President Recep Tayyip Erdogan had pursued low-interest rates and a high-growth program despite high inflation…reports Asian Lite News

Turkish Vice President Cevdet Yilmaz said that the government would maintain existing monetary disciplines and follow free market rules while raising overall economic competitiveness and productivity to curb inflation.

“We will take effective and determined steps in the fight against inflation, which we see as the main problem,” Yilmaz said after presiding over the first meeting of the Economic Coordination Board after assuming office.

“Within free market rules, we will continue to take steps to increase the competitiveness and efficiency of our economy,” Xinhua news agency quoted the Vice President as saying.

The government will work towards achieving its investment, employment, production and export goals, he said, adding that the government is determined to prevent the current account deficit from hindering the sustainable growth of Turkey.

President Recep Tayyip Erdogan had pursued low-interest rates and a high-growth program despite high inflation and low foreign currency reserves used to stabilize the Turkish lira.

On Wednesday, the President said his stance towards interest rates would not change but the newly-appointed Finance Minister Mehmet Simsek would have leeway to pivot back to conventional economic policies.

Official data showed that Turkey’s annual inflation slowed to 39.59 per cent in May, the lowest level since December 2021.

ALSO READ: Turkey summons Swiss envoy over demonstration against Erdogan