ANKARA – Turkey’s government is focused on inflation and will revise its medium-term economic programme and address its monetary and fiscal policies in coming months, newly-appointed Vice President Cevdet Yilmaz said on Monday.
President Tayyip Erdogan’s unorthodox policies in recent years have led to a sharp decline in the lira’s value, sending inflation to a 24-year high of more than 85% last year.
Authorities have tried to support the currency by countering forex demand and introducing a scheme that protects lira deposits against forex depreciation.
The appointments of Mehmet Simsek, who is highly regarded by financial markets, as finance minister and of Hafize Gaye Erkan, a former Wall Street banker, as central bank governor have heightened expectations of a return to orthodox policies.
“We will update our medium-term programme in coming months,” said Yilmaz, who was appointed this month and is also seen as a market-friendly figure. He said the programme will address monetary and fiscal policies, and structural reforms.
The programme will include new details about the budget, Yilmaz said, adding that the government’s Economic Coordination Council will meet next week after a cabinet meeting.
“While we enact policies to lower inflation on the one hand, we will enact policies to minimise the impact of inflation on large parts of society on the other,” he said.
Speaking a day before the first meeting to determine the raise to minimum wage, Yilmaz said the government will aim to preserve Turks’ purchasing power.