Türkiye on Monday repeated its determination and emphasized resolute efforts in combating inflation through the efficient application of monetary and fiscal policies.
Inflation climbed to an annual rate of 61.53% in September and is expected to rise into next year, while the central bank last week repeated its readiness to hike rates further as needed to curb soaring prices.
The bank on Thursday raised its benchmark policy rate by 500 basis points to 35% as expected, tightening aggressively for a third straight month as it steps up efforts to rein in inflation.
A statement following a closely watched meeting of top economy officials on Monday said emphasis was placed on the determined fight against inflation through the effective use of monetary and fiscal policies.
Convened under the chairmanship of Vice President Cevdet Yılmaz, the Economic Coordination Council’s (EKK) fifth meeting this year outlined the objectives of enhancing social welfare through high-value production structures and sustainable growth based on exports.
The meeting was attended by Treasury and Finance Minister Mehmet Şimşek, Labor and Social Security Minister Vedat Işıkhan, Industry and Technology Minister Mehmet Fatih Kacır, Agriculture and Forestry Minister Ibrahim Yumaklı, Presidential Strategy and Budget Director Ibrahim Şenel, Central Bank of the Republic of Türkiye (CBRT) Governor Hafize Gaye Erkan and representatives from relevant institutions.
After being named by President Recep Tayyip Erdoğan following the May elections, the new economy administration has reversed the yearslong easing cycle and aggressively lifted interest rates to conquer inflation, rebuild foreign currency reserves, and curb the chronic current account deficit.
The central bank hiked its key policy rate by a combined 2,650 basis points over the last five months, accompanied by other macroprudential measures, such as credit tightening to cut domestic demand, the main driver of inflation.
During the EKK meeting, discussions also centered around investment commitments, particularly the central bank’s Investment-Linked Advance Credits (YTAK), aimed at enhancing export potential.
The statement said the meeting addressed the general framework of YTAK investments, focused on increasing high-value export potential and ensuring sustainable improvements in the current account balance.
"The CBRT's YTAK general framework for investments that increase our high value-added export potential and provide sustainable improvement in the current account balance has been evaluated by the council and will be shared with the public after the implementation details are clarified by the relevant institutions," the statement noted.
It also said it was decided that the YTAK program would be designed in alignment with the objectives of the central bank.
The meeting also involved evaluations regarding external financing resources in the form of loans provided by international organizations.
"The studies that can be carried out for more effective utilization of these resources in the post-commitment period have been discussed," the EKK statement noted.