Turkey in 'total battle' with inflation as rebalancing began - Albayrak

Turkish Economy and Finance Minister Berat Albayrak said economic growth data for the second quarter showed that rebalancing has already started.

Turkey is now embarking on a “total battle” with inflation and to tackle the current account deficit, Albayrak said, according to the state-run Anadolu news agency. Turkey will create more healthy economic growth going forward with structural reforms and tight fiscal and "macro-rebalancing" policies, he said.

Albayrak made no mention of monetary policy in the statement, also carried by newspapers Hurriyet, Milliyet and Sabah. Many investors and economists are expecting the central bank to raise interest rates in a meeting on Thursday to help bolster confidence after the lira slumped 40 percent against the dollar this year.

Economic growth data for the three months to June – Turkey expanded an annual 5.2 percent -- showed the positive contribution of exports and tourism revenue, Albayrak said. Turkey will continue to focus on its export-led expansion, he said.

While indicators show that consumer demand will slow at a greater rate from the third quarter, exports and tourism will help the economy in the second half, with "net foreign demand" contributing very positively, Albayrak said.