Macro-financial stability strengthening: Şimşek

ANKARA

The steps and measures that the government has taken have helped to strengthen the macro-financial stability, Treasury and Finance Minister Mehmet Şimşek has said, adding that more reforms are in the pipeline.

The primary objectives of the medium-term program are to attain balanced growth, improvement in the current account deficit, reinstate fiscal discipline, build up reserves and exit the FX-protected deposit discount scheme, Şimşek told lawmakers in parliament during the discussions on his ministry’s 2024 budget.

“We have made good progress in efforts to meet those targets since June. We have taken measures, but of course, we have more reforms to implement down the road,” the minister added.

Rebalancing in the economy, growing interest in Turkish Lira and lira assets, increase in reserves and stable course of the exchange rate support the fight against inflation, said.

“We will bring inflation down permanently. We are determined about it as it is the main objective of our program.”

The monthly inflation has entered a downward path since August, while the decline in core inflation has become more evident, according to Şimşek.

“The market has started to price in the inflation targets for next year and the following years.”

Domestic demand will moderate due to the disinflation, Şimşek said, recalling that the government’s GDP growth targets for this year and next are 4.4 percent and 4 percent, respectively.