Assessment of the Economic Program by Vice President Yılmaz
Vice President Cevdet Yılmaz, in a statement made via social media, evaluated Turkey’s economic program and noted that positive results have been achieved in various areas. He stated that significant progress made during the disinflation process led the Central Bank to reduce the policy interest rate by 250 basis points from 50% to 47.5%. This decision marked the Central Bank's first interest rate cut in 22 months.
The statement emphasized that the strong coordination between monetary and fiscal policies, along with transparent and predictable steps, played a vital role in this decision. Yılmaz mentioned that there has been a decrease of 28.4 percentage points in the inflation rate over the last six months, alongside significant declines in the annual inflation rate, as well as improvements in the underlying trend and expectations of inflation.
Positive trends in macroeconomic indicators Yılmaz noted that macroeconomic indicators have developed in line with the disinflationary process and stated that monetary and fiscal policies have adjusted domestic demand to levels that will support the decrease in inflation within the framework of balancing the growth composition. He also revealed that there has been a notable improvement in the current account balance and that strengthening reserves have increased confidence in the economy.
He stated that alongside macro policies, they will continue to aim for Turkey's stable growth and higher placement in the international arena by providing structural transformations. He emphasized that reducing inflation to single-digit levels is a top priority and expressed that they will coordinate and effectively implement programs to ensure the disinflation process in that direction.
Sustainable growth and increasing prosperity goals Yılmaz stated that thanks to the positive results achieved in the fight against inflation, they will maintain their determination to achieve sustainable growth and permanently increase the welfare of citizens. In this regard, he emphasized that steps will be taken to enhance the overall welfare level of society through the continuity and effective implementation of economic policies.