Government vows to reduce inflation

ANKARA

Monetary and fiscal policies will be used in the fight against inflation, according to the statement released after the Economy Coordination Board (ECB) meeting.

The board, chaired by Vice President Cevdet Yılmaz, convened on Oct. 30.

Treasury and Finance Minister Mehmet Şimşek, Industry and Technology Minister Fatih Kacır, Agriculture Minister İbrahim Yumaklı, Central Bank Governor Hafize Gaye Erkan and other high-level officials attended the board meeting held at the presidential complex in the capital Ankara.

“We will continue our fight against inflation by using monetary and fiscal policies effectively in the coming period," the statement said.
The Central Bank lifted the key interest rate for a fifth month in a row in October in an effort to curb inflation.

The bank on Oct. 26 hiked its policy rate, the one-week repo auction rate, by another 500 basis points from 30 percent to 35 percent. The bank has raised the policy rate by a cumulative 2,650 basis points since June.

Monetary tightening will be further strengthened as much as needed in a timely and gradual manner until a significant improvement in the inflation outlook is achieved, according to the bank.

“Also, while healing the wounds of the [February] earthquakes, we aim to make our country more resistant to all risks, especially earthquakes,” said the statement released after the ECB meeting.

The government targets to increase social welfare through sustainable growth based on exports, it added.

According to the statement, the board also discussed the Central Bank’s Investment Committed Advance Loans (YTAK) for investments, which will boost export potential with high-added value and ensure sustainable improvement in the current account balance.

The details regarding the implementation of YTAK will be shared with the public after relevant institutions finalize their work on the scheme, the statement added.

Monetary and fiscal policies will be used in the fight against inflation, according to the statement released after the Economy Coordination Board (ECB) meeting.