Home Economy Erdoğan ‘believes’ his economy team’s policies to curb inflation

Erdoğan ‘believes’ his economy team’s policies to curb inflation

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Erdoğan ‘believes’ his economy team’s policies to curb inflation

President Recep Tayyip Erdoğan on Thursday reiterated his backing and mentioned he “believes” in his new financial system crew of revered technocrats and the steps which have been taken to rein in inflation.

Speaking to reporters in New York after addressing the U.N. General Assembly, Erdoğan mentioned he “hoped” they’d begin seeing the outcomes of the brand new financial insurance policies within the first quarter of 2024.

“I think we will start seeing positive developments regarding the inflation in the first quarter of next year. There are good signs right now,” he famous.

Annual inflation rose to almost 60% in August and is predicted to extend additional towards the tip of the yr. It had reached a 24-year excessive of 85.5% final October and stood at 47.83% this July after regressing to as little as 38.21% in June.

After profitable reelection in May, Erdoğan named a brand new Cabinet, together with two achieved bankers, Mehmet Şimşek as treasury and finance minister and Hafize Gaye Erkan because the governor of the Central Bank of the Republic of Türkiye.

Under Erkan, the central financial institution launched aggressive rate of interest hikes in a bid to deal with the nation’s long-term inflation problem.

The financial institution on Thursday raised its key rate of interest by a lofty 500 foundation factors to 30%, marking a second month of aggressive tightening after Erdoğan expressed his strongest pledge of help for the financial system crew’s coverage overhaul.

The financial institution reiterated it is able to increase charges additional as wanted to rein in inflation.

Earlier this month, the federal government lifted its year-end inflation forecast to 65%. Erdoğan mentioned on the time: “With the support of tight monetary policy, we will bring down inflation to single digits again.”

On Thursday, he mentioned the officers instructed him that “we are going to begin to get optimistic outcomes as of the primary quarter of subsequent yr.

“We trust them, we believe in them,” Erdoğan mentioned.

He confused the struggle towards inflation was among the many high priorities within the new medium-term program, unveiled earlier this month.

“How are we going to do this? With fiscal discipline, structural reforms, we will make our economy resistant to all kinds of storms,” Erdoğan mentioned.

“We’ve done it before, we’ll do it again.”

The new financial street map has garnered urge for food amongst international buyers, Erdoğan mentioned.

“A crucial pillar of our program is attracting foreign investment to our country. Just preparing and announcing the program has already generated appetite among foreign investors,” he famous.

“By harnessing this momentum, we will quickly move towards our goals.”

Steps in power drilling with Israel

Erdoğan additionally mentioned Türkiye and Israel would quickly start taking joint steps in power drilling, including the 2 international locations would additionally function power networks to Europe via Türkiye.

The assertion got here after Erdoğan met Israeli Prime Minister Benjamin Netanyahu in New York, marking their first in-person talks, in a milestone as the 2 international locations have been working to restore relations lengthy strained by disputes over insurance policies towards the Palestinians.

A go to to Türkiye by Israeli President Isaac Herzog in March 2022, adopted by visits by each international ministers, helped the thaw, however a deliberate go to by Netanyahu in July was postponed because of the Israeli premier’s well being points.

The assembly in New York was primarily centered on potential power cooperation between the 2 international locations.

Erdoğan mentioned the 2 leaders had agreed on mutual visits within the coming interval, and that power cooperation would ramp up after these.

“God willing, we will take this step without much delay and we will start energy drilling operations with Israel. We will also start operating energy transfer networks not just to Türkiye, but also from Türkiye to Europe,” he added.

The assembly additionally centered on growing bilateral commerce quantity between Türkiye an Israel.

“At the moment, our total trade volume is $9.5 billion,” Erdoğan mentioned.

“We agreed to raise this $9.5 billion trade volume to a minimum of $15 billion in the first phase,” he famous.

Erdoğan added that he and Netanyahu had mentioned forming a mechanism between their international locations, together with some ministries, to extend cooperation in power, tourism and expertise.

‘Hopeful’ about restart of grain deal

Among others, Erdoğan mentioned he remained “hopeful” {that a} resolution might be discovered to revive the Black Sea grain take care of Russia and Ukraine.

He mentioned he doesn’t agree with the unfavourable method different leaders are exhibiting in the direction of his Russian counterpart Vladimir Putin, including Russia couldn’t be disregarded.

Russia stop the grain deal, brokered by the U.N. and Türkiye in 2022, saying that its personal meals and fertilizer exports, whereas not topic to Western sanctions, confronted obstacles and that not sufficient Ukrainian grain was going to international locations in want.

Ukrainian ports throughout the Danube River have since turn into a significant export hall for grain, and Russia has focused the route with common air strikes.

Ukraine final month introduced a “humanitarian corridor” to launch ships trapped in its ports and to avoid a de facto blockade.

Erdoğan earlier this month met with Putin within the Black Sea resort of Sochi to attempt to persuade Moscow to rethink its abandonment of the grain deal.

On Thursday, Erdoğan mentioned he would once more talk about the initiative with Putin, with out mentioning a possible timeframe.

Elon Musk to go to Türkiye

Furthermore, the president mentioned Tesla and SpaceX founder Elon Musk would “most likely” come to Türkiye quickly and go to the nation’s largest aviation and expertise pageant.

Teknofest is ready to kick off within the Aegean province of Izmir on Sept. 27 and final via Oct. 1.

Erdoğan and Musk have held a string of conferences each in Türkiye and on the sidelines of worldwide boards, creating a friendship that they prolonged on Sunday in New York.

Erdoğan invited Musk to ascertain a Tesla manufacturing facility in Türkiye.

For his half, Musk mentioned that many Turkish suppliers are already working with Tesla and that Türkiye was among the many most essential candidates for its subsequent manufacturing facility.

Erdoğan additionally mentioned Türkiye was open to cooperation on synthetic intelligence and Starlink, the satellite tv for pc web enterprise of Musk’s SpaceX.

“We discussed with Musk both Tesla’s investment in Türkiye and taking joint steps in space studies. I hope they will conduct a joint study with our friends,” he instructed reporters.

“I invited him to Izmir Teknofest. He will most likely come to Izmir Teknofest as well,” Erdoğan mentioned.

“If he comes to Izmir, there will be an Izmir Teknofest that will attract our young people very much.”

Erdoğan mentioned Musk had instructed him that he has been following Türkiye’s breakthrough in fight drones and “found them successful.”

“He is aware of the achievements of our country in the field of technology in recent years. This will also be a driving force for him to move his investments to Türkiye.”

Source: www.dailysabah.com

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