Erdogan expects inflation to fall, pledges financial responsibility
Date
5/27/2024 4:45:18 AM
(MENAFN) Turkish President Recep Tayyip Erdogan emphasized on Saturday that Turkish financial policy is poised to alleviate inflationary pressures, expressing optimism about a potential decline in inflation rates in the latter half of the year. Addressing the Council on Foreign Economic Relations, Erdogan reiterated his support for the country's economic program, affirming expectations that annual inflation will peak in May before embarking on a downward trajectory, in alignment with forecasts by the Central Bank.
Erdogan asserted that the Turkish government remains committed to steering the Economy towards a period of declining inflation, highlighting its proactive approach to fiscal policy aimed at mitigating inflationary pressures. He underscored the importance of achieving sustained reductions in inflation rather than short-term fixes, emphasizing the government's dedication to fostering economic stability and growth.
The Turkish President outlined the primary objective of the economic program, which is to bring inflation down to single-digit figures. Erdogan emphasized the government's determination to pursue policies conducive to sustainable reductions in inflation levels, signaling a departure from previous temporary measures. This commitment reflects the government's broader strategy to instill confidence in the Turkish economy and promote long-term economic prosperity.
In April, Turkey grappled with an annual consumer price inflation rate of approximately 70 percent, with expectations of further increases to around 75 percent in the current month. The Central Bank responded to these challenges by implementing interest rate hikes, raising rates to levels reaching 50 percent since June of the previous year. This reversal of monetary policy easing, which had persisted for years under Erdogan's leadership, underscores the government's efforts to address inflation and restore economic stability.
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