Turkish President Recep Tayyip Erdogan was quoted by Turkish media as saying on Monday that his country must be patient as it seeks to reduce inflation, given the delayed effect that will appear later from tightening monetary policies.
Speaking to reporters, Erdogan said that he hopes to see a “very clear” decline in inflation within 12 months, given that economic policies “will take some time” to have an impact.
“We need to be a little patient,” he was quoted as saying.
The Turkish President announces an economic plan to combat inflation
Erdogan said in statements last week that there was a need for a “tight monetary policy” to slow inflation, in a clear change in his position that had long frustrated investors by supporting very low borrowing costs.
He said, while revealing the features of the medium-term economic program prepared by his government for the coming period: “We will reduce inflation to single digits with the support of monetary tightening.”
The Turkish president revamped his economic team shortly after his election victory, appointing Mehmet Simsek, a former Merrill Lynch bond strategist, as finance minister, and Hafiza Erkan, who had worked at Goldman Sachs Group, as central bank governor.
It is noteworthy that Fitch Credit Rating Agency recently raised its future expectations for foreign exchange reserves in Turkey to “stable” and confirmed its rating at B, saying that changing economic policy may reduce overall financial instability in the near term.
2023-09-11 14:45:33
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