Al­bayrak ex­plains new eco­nomic pro­gram in Bali

Daily Sabah (Turkey) - - Front Page -

AT THE G20 Fi­nance Min­is­ters and Cen­tral Bank Gover­nors Meet­ing held in In­done­sia’s Bali late Thurs­day, Trea­sury and Fi­nance Min­is­ter Berat Al­bayrak ex­plained the de­tails of the new eco­nomic pro­gram that “will in­crease the con­fi­dence of global in­vestors” in Turkey.

THE G20 Fi­nance Min­is­ters and Cen­tral Bank Gover­nors Meet­ing in In­done­sia’s Bali was very fruit­ful for Turkey’s eco­nomic diplo­macy, Trea­sury and Fi­nance Min­is­ter Berat Al­bayrak said Thurs­day.

“Dur­ing our meet­ings with the rep­re­sen­ta­tives of dif­fer­ent fi­nan­cial in­sti­tu­tions, in­vest­ment funds and banks, based in the U.S., Europe and Asia, we shared our New Eco­nomic Pro­gram [NEP] and poli­cies that will in­crease the con­fi­dence of global in­vestors in our coun­try,” Al­bayrak said on his so­cial me­dia ac­count.

Al­bayrak on Sept. 20 an­nounced the NEP as a frame­work with a vi­sion to bat­tle the ex­ist­ing prob­lems in the Turk­ish econ­omy, in­clud­ing cur­rency volatil­ity, run­ning in­fla­tion and a dou­ble-digit deficit, and set tar­gets that are based on Turkey’s macroe­co­nomic re­al­i­ties, hence re­as­sur­ing mar­ket con­fi­dence in the Turk­ish econ­omy.

Al­bayrak also at­tended the re­cep­tion hosted by the Banks As­so­ci­a­tion of Turkey (TBB) in Bali. “We have shared the steps we will take to fur­ther strengthen our bank­ing sec­tor with nu­mer­ous in­ter­na­tional in­vestors and bankers,” he said.

More­over, in his “Macroe­co­nomic Out­look and Mone­tary Pol­icy in Turkey” pre­sen­ta­tion at the In­ter­na­tional Mone­tary Fund (IMF) and the World Bank Group meet­ings in Bali, Cen­tral Bank of the Repub­lic of Turkey (CBRT) Gover­nor Mu­rat Çetinkaya said the cen­tral bank will con­tinue to use all avail­able in­stru­ments in pur­suit of the price sta­bil­ity ob­jec­tive.

“A strong mone­tary tight­en­ing has been de­liv­ered to sup­port price sta­bil­ity,” the gover­nor said in his pre­sen­ta­tion.

Çetinkaya added that re­bal­anc­ing in the eco­nomic ac­tiv­ity has be­come more sig­nif­i­cant. In Septem­ber, in­fla­tion hit 24.52 per­cent on a year-on-year ba­sis, up 6.3 per­cent from the pre­vi­ous month, ac­cord­ing to the Turk­ish Sta­tis­ti­cal In­sti­tute (TurkS­tat). Ear­lier in the week, Al­bayrak an­nounced an all-out pro­gram, backed by var­i­ous sec­tors, to curb in­fla­tion and sup­port busi­nesses as well as con­sumers amid the run­ning in­fla­tion and cur­rency volatil­ity. The Full-Scale Fight against In­fla­tion pro­gram of­fers price dis­counts in the re­tail sec­tor, in­clud­ing food and tex­tiles, no in­crease in elec­tric­ity and gas bills, and low­er­ing in­ter­est rates for bank loans. As noted in the NEP, Turkey’s in­fla­tion rate tar­get for this year is 20.8 per­cent. The tar­get for next year is 15.9 per­cent, 9.8 per­cent for 2020 and 6 per­cent for 2021.

“De­te­ri­o­rat­ing in pric­ing be­hav­ior poses up­side risks on the in­fla­tion out­look, de­spite weaker do­mes­tic de­mand con­di­tions,” Çetinkaya said in his pre­sen­ta­tion, adding that ex­ter­nal de­mand has main­tained its strength, while the slow­down in do­mes­tic de­mand ac­cel­er­ated. The Turk­ish lira has lost over 37 per­cent in value against the U.S. dol­lar since the be­gin­ning of the year. In an at­tempt to halt the lira’s slide, the cen­tral bank de­liv­ered a 6.25 per­cent­age point rate hike last month.

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