Turkish President’s Efforts to Boost Foreign Direct Investment Inflows

Turkish President Recep Tayyip Erdogan said on Monday that his new economic team has stepped up efforts to boost foreign direct investment inflows after winning elections in May for a new five-year term.

Erdogan added after the weekly cabinet meeting that the government is committed to boosting the economy through investment and returning the current account surplus while working to improve the lives of citizens.

Turkey’s Central Bank Continues Monetary Policy Shift

In another context, Turkey’s Central Bank said today, Monday, that the country will continue the shift in its monetary policy, which began with a sharp increase in interest rates after last month’s presidential election, until inflation expectations improve significantly.

Transition to Traditional Economic Policy

More than a month after the re-election of President Recep Tayyip Erdogan, the country is adopting a more traditional economic policy following decisions to cut interest rates despite high inflation.

“The process of tightening monetary policy is expected to continue until a significant improvement in inflation expectations is achieved,” says the minutes of the June meeting of the Monetary Policy Committee, which decided to raise the main interest rate by 650 basis points. up to 15%.

The bank said the transition after a two-year monetary easing cycle was the first step in the process of curbing inflation.

Annual inflation approached 40% in May after hitting a 24-year high of over 85% in October last year.