Turkey to see single-digit inflation, interest rates by 2019: Albayrak

ANKARA

Treasury and Finance Minister Berat Albayrak has said inflation and interest rates will decrease to single digits by 2019.

In an interview with Turkish broadcaster NTV on Aug. 3, Albayrak said consumer prices in Turkey will see a downward trend by the end of 2018.

“We aim to discipline both inflation and interest rates and to reduce them to single digits by 2019,” Albayrak said, adding that concrete steps were taken.

“We will even see a strong downward cycle in both rates by the end of 2018,” he noted.

His comments came after official data showed that consumer prices in Turkey went up by 15.85 percent in July compared to the same month last year.

“In the new period, a strong and highly coordinated structure will be built. We have already started to take steps to achieve this,” he said.

The minister stated that “an unprecedented, more solid and production-based and growth-oriented Medium Term Program [MTP]” will be unveiled in the first half of September.

“We will focus on what to do in the upcoming five years, during which we will maintain a strong economic outlook,” he added.

Albayrak also said Turkey would not compromise on growth, price stability or budget discipline.

Saying that a series of solid steps were taken to maintain budget discipline and price stability, he added: “We have commenced a process to achieve up to 30 percent savings across all ministries in current terms.”

He also noted that the Treasury would borrow less in August by around 2.3 billion liras.

Regarding the U.S. move to impose sanctions on two Turkish ministers following tension over an American pastor, who faces terrorism charges in Turkey, Albayrak said problems may occur but relations should be maintained through diplomacy.