There will be no compromise in budget discipline in Turkey's strong program to combat surging inflation due to be announced next week, Treasury and Finance Minister Berat Albayrak said Sunday.
Earlier this week data showed Turkey's inflation increased to nearly 25 percent in September, with prices jumping 6.3 percent from a month earlier.
The size of the increase exceeded expectations and underscored the impact of a currency crisis on the economy and consumers, after the lira was targeted by a series of manipulative moves.
"There is no compromise in budget discipline, the rebalancing period in the economy has started. A strong program to combat inflation will be announced," Albayrak told members of the ruling Justice and Development Party (AK Party) on Sunday.
Emphasizing Turkey's relatively low public (28 percent) and household (16 percent) debt-to-GDP ratios — both roughly half the developing country average — Albayrak said the country was better off than global averages.
"Budget discipline, which has been one of the greatest economic successes in 16 years of AK Party governments, will be strictly upheld in the coming period without compromise," he said.
Albayrak also discussed the government's measures against speculative attacks on Turkey's economy in the past two months, including the 25 percent foreign exchange limit on Turkish banks' swap transactions, revision of the stoppage rates on deposit accounts, steps to strengthen the lira as well as ameliorative measures for banks.
He underlined the country's success in lowering its credit risk (CDS) spread by 550 basis points through effective economic policy and strong coordination with stakeholders.
On future policy, Albayrak said increasing exports, lowering the current account deficit, and facilitating production of technology would be prioritized.
In an interview with the private broadcaster on Wednesday, Albayrak said that Turkey has left the worst behind after September's inflation figures.
"With the steps, we have taken in this process, we have begun to receive signals that the process experienced in the economy for the past few months is not permanent and that we will walk with more concrete, realistic and safe steps by leaving the process behind," Albayrak said.
In an attempt to halt lira's slide, the central bank delivered a 6.25 percentage point rate hike last month.