Gov’t aims to bring inflation down to single digits in 2026, says VP Yılmaz

ANKARA

The government aims to bring the inflation rate to down to single digits in 2026, Vice President Cevdet Yılmaz has said, reiterating that the new medium-term program (MTP) will be unveiled in September.

The MTP will include the main framework for monetary policy on which the Central Bank is working, as well as fiscal policies and the budget, Yılmaz told reporters after a cabinet meeting in Ankara on Aug. 7.

The government sets the growth, employment and inflation targets together with the Central Bank in the MTP, he added.

The Central Bank last month raised its end-2023 inflation forecast from a 22.3 percent to 58 percent.

Some small updates could be possible by 2025 but another major update to inflation forecast should not be expected, Yılmaz said.

The MTP will also introduce structural changes which will boost competitiveness and productivity, he said, adding that those will include tax reforms, judicial reforms related to economy and measures designed to improve the investment environment.

“They will be fundamental changes and transformations which will put Türkiye in a more favorable position in the world.”

The new MTP will probably be unveiled in the first 10 days of September, Yılmaz said, noting that however it will depend on how works on the program go.

“We have completed some of the consultations [on the program]. We have met with the representatives of the business world and labor unions.”

There will be a meeting with the representatives of the financial sector on Aug. 11 at the Istanbul Financial Center, Yılmaz said.

Officials from the public and private financial sector as well as banks’ general managers will attend the meeting, according to the vice president.