Turkey’s growth potential to increase gradually

Published 26.11.2014 01:04
Turkey’s growth potential to increase gradually

The governor of Central Bank of the Republic of Turkey (CBRT), Erdem Başçı, made a presentation at the Board of Ministers meeting on Monday stating that with the implementation of a structural formation program, Turkey's growth potential will gradually increase. Emphasizing that the main aim of the 10th Development Plan is to ensure that Turkey becomes one of the highest income countries with no remnant poverty issues, Başçı reminded that this new plan was different from previous plans as it included 25 special programs amalgamated under the name "Preferential Transformation Programs."

He further added that these programs have been prepared to increase the practicality of the plan and the efficiency of development efforts. "While global demand is decreasing, domestic demand is supporting growth," said Başçı. Başçı further stated that the mild progress of consumer loans and the positive developments in foreign trade rates is supporting the improvement in the current account balance. Highlighting that the macro precautionary measures taken at the beginning of the year and the tight monetary policies are also positively affecting the inflation trend of core goods, Başçı underlined that the factors effecting inflation expectations, including pricing trends, will be closely observed. "Until an apparent improvement is observed in inflation, tight monetary policies will be applied in order to keep the yield curve close to horizontal," added Başçı. He also underlined that if the current tight monetary policies continue to be applied, inflation will be consistent with the outlook indicated in the inflation report for 2015.

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