Türkiye says to continue monetary disciplines, free market rules to tackle inflation

Customers shop at a bazaar in Istanbul, Türkiye, Dec. 5, 2022. (Xinhua/Shadati)

ANKARA, July 15 (Xinhua) — Turkish Vice President Cevdet Yilmaz said on Thursday that the government would maintain existing monetary disciplines and follow free market rules while raising overall economic competitiveness and productivity to curb inflation.

“We will take effective and determined steps in the fight against inflation, which we see as the main problem,” Yilmaz said after presiding over the first meeting of the Economic Coordination Board after assuming office.

“Within free market rules, we will continue to take steps to increase the competitiveness and efficiency of our economy,” Yilmaz said.

A teller counts Turkish lira banknotes at a foreign exchange office in Ankara, Türkiye, on May 31, 2023. (Photo by Mustafa Kaya/Xinhua)

The government will work towards achieving its investment, employment, production and export goals, he said, adding that the government is determined to prevent the current account deficit from hindering the sustainable growth of Türkiye.

Erdogan pursued low-interest rates and a high-growth program despite high inflation and low foreign currency reserves used to stabilize the Turkish lira.

On Wednesday, the Turkish leader said his stance towards interest rates would not change but the newly-appointed Finance Minister Mehmet Simsek would have leeway to pivot back to conventional economic policies.

Official data showed that Türkiye’s annual inflation slowed to 39.59 percent in May, the lowest level since December 2021.  ■