ISTANBUL: Turkiye is committed to carrying on its tight economic policies in order to cool inflation, and though it may fine-tune the program it will not change course, Vice President Cevdet Yilmaz said in comments embargoed to Friday.
“There is no plan to pause our program,” Yilmaz said at a briefing with reporters in Istanbul on Thursday. “All programs are dynamic, and adjustments can always be made.”
Yilmaz, who plays a key role overseeing economic policy at the presidency, said any such adjustments would aim to support production, investment and exports while moderating consumption.
Turkiye has pursued tight monetary and fiscal policies for more than two years in order to reduce price pressure, leading to high financing and borrowing costs that have weighed on businesses and households. Inflation has eased slowly but steadily over the last year but remains elevated at 31 percent annually.
Last month, Is Bank CEO Hakan Aran warned that focusing solely on one target — inflation — could create side effects, suggesting a “pause and restart” might be healthy once the program achieves certain targets.
