Treasury and Finance Minister Nureddin Nebati stated following the Consultation and Evaluation meeting held with the Bursa Chamber of Commerce and Industry that the government is determined to reduce inflation permanently and maintain price stability.
Nebati also said they expect a permanent decrease in inflation at the end of the year.
He also added that the value of funds in FX-Protected TRY Deposit Accounts (KKM) has reached TRY 695bn.
Here are the highlights from the Treasury and Finance Minister’s statement:
>> Many countries around the world are facing inflation
>> Turkey has been ahead of the rest of the world by taking proactive decisions taken during the pandemic
>> High growth rates are positively reflected in the labor market.
>> Indicators show that domestic economic activities are still strong.
>> The government is taking determined steps to reduce inflation, which has reached 61.1% as of March, for good and to increase price stability.
>> Turkey has quickly overcome the volatility in foreign exchange (FX) rates with the KKM program and financial instruments offered by the KKM. FX pressure on inflation has declined as a result of the KKM.
>> FX rate stability continues.
>> We all know that people shape their behavior around USD in Turkey. It is important to turn this behavior into confidence in TRY, carrying out better and long-term transactions.
>> Inflation has currently exceeded 60%, which is a problem. But we’ve managed to remove it from the pincer of the interest rate. Transactions aren’t carried out with an interest rate above inflation and steps to clear the way for the business world are taken with select FX policies in the banking sector.
>> Steps to change people’s behavioral tendencies are an important part of the fight against inflation. We will take these steps. We’ll get over inertia in the economy. We’ll experience a fall in inflation in line with our expectations at the end of the year following a plateau.
>> We’ll continue to protect our nation against an increased cost of living.
>> Those, who build policies based on further inflation increases and enterprises that implement undue prices are being tracked.
>> We’ve worked past the FX rate hike and the interest rate. Inflation comes next.
>> There were those who said this couldn’t happen without an interest rate increase. But we achieved it.
>> We’ll together do what needs to be done to fight inflation.
>> We’ll overcome these difficulties with those who believe in their country, economy, motherland, and society.