Jan 11 2018

Turkish lira volatility won’t reoccur in 2018 – Erdoğan adviser

Turkey will not experience a repeat of volatility in the currency markets in 2018 because inflation will slow and the country’s trade balance with the rest of the world will improve, according to Cemil Ertem, senior economic adviser to President Recep Tayyip Erdoğan.

The government also has the means to ensure that interest rates decline this year, Ertem told NTV television in an interview, according to the pro-government Sabah newspaper.

Reforms recommended by the central bank to deal with inflation and the current account deficit will be enacted shortly, he said. The measures, which will also include non-monetary steps, will help deal with price increases in the medium and long-term, he added.

The government will also intensify measures to stimulate the economy after introducing a state-backed loan guarantee fund last year, Ertem said. Reforms may also be enacted to prevent the unnecessary import of intermediate goods, he said.

Inflation will slow by 150-200 basis points in the first quarter, he said, repeating an earlier prediction.