Turkey..a special path to combat inflation and 2022 is the year of the highest gains
Turkish Finance Minister Nureddin Nabati announced today, Wednesday, that Turkey considers combating price hikes a priority and that it is ignoring “traditional policies” and charting its own course, after annual inflation rose to 36% last December, the highest level in 19 years.
In a speech to a business group, Al-Nabati said, “We have excluded traditional policies, and now is the time for innovative policies.”
He added that Turkey will not compromise in budget discipline and will implement monetary and fiscal policies in concert with each other.
“We will advance on our own path, not in a path that others have drawn for us,” he said, also vowing to develop new tools to support companies that focus on production, manufacturing and export.
The Turkish minister stressed that 2022 will be the year of the highest gains for his country, noting that the growth of the Turkish economy will continue during the current year as well.
He added that Turkey will witness during the new year breaking records, implementing the new economic model, and achieving higher economic gains.
The Turkish currency plunged 44% last year, driving up prices through imports and leading to the highest level of inflation under Erdogan.
The currency witnessed an improvement at the beginning of trading today, Wednesday, before falling slightly to 13.47 pounds against the dollar, after the speech delivered by Nabati.
Despite the rise in inflation, the central bank has cut the basic interest rate by 500 basis points to 14% since last September, which has scared investors and led to the transformation of real returns to negative levels.