Türkiye's macroeconomic stability and reform program is heading into its final phase, focused on structural transformation and sustainable disinflation after a period of policy normalization and rebalancing, Treasury and Finance Minister Mehmet Şimşek said Friday.
Şimşek was speaking at the Future of Finance Summit, organized by Türkiye's leading media group and Daily Sabah's parent company, Turkuvaz Media.
The medium-term program, updated this September, aims at bringing inflation down to single digits, increasing predictability, achieving a sustainable current account balance and ensuring all these gains are permanent.
Şimşek said the three-stage road map – control, rebalancing and structural transformation – is progressing as planned. The first phase stabilized markets and curbed risks related to reserves and contingent liabilities, he said, while the second saw progress on inflation, an exit from the foreign exchange-protected Turkish lira deposit scheme, or KKM, and an improvement in the current account balance.
"The second phase is ending as of this month. We are entering the final phase. We are entering a period in which households and the real sector will feel the program's results more strongly," he said.
Inflation likely to fall into 20% range
On inflation, Şimşek stressed upward pressure from agriculture-related shocks, including frost and drought, which had caused food prices to increase more than expected, and a decrease in fruit and grain production
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