ISTANBUL: Turkiye is committed to carrying on its tight economic policies in order to cool inflation, and though it may fine-tune the program it will not change course, Vice President Cevdet Yilmaz said in comments embargoed to Friday.
“There is no plan to pause our program,” Yilmaz said at a briefing with reporters in Istanbul on Thursday. “All programs are dynamic, and adjustments can always be made.”
Yilmaz, who plays a key role overseeing economic policy at the presidency, said any such adjustments would aim to support production, investment and exports while moderating consumption.
Turkiye has pursued tight monetary and fiscal policies for more than two years in order to reduce price pressure, leading to high financing and borrowing costs that have weighed on businesses and households. Inflation has eased slowly but steadily over the last year but remains elevated at 31 percent annually.
Last month, Is Bank CEO Hakan Aran warned that focusing solely on one target — inflation — could create side effects, suggesting a “pause and restart” might be healthy once the program achieves certain targets.
Yılmaz said the government expects improvements in inflation in the first quarter, which should reflect to market expectations for year-end inflation around 23 percent. The government projects inflation to dip as far as 16 percent by year end, within a 13-19 percent range, and falling to 9 percent in 2027. The central bank forecasts inflation between 13-19 percent by end-2026.
Yilmaz noted inflation fell by nearly 45 points despite pressure from elevated food prices, hit by agricultural frost and drought.
The agricultural sector is expected to support growth and help ease price rises this year, which could help achieve official inflation targets, he said.
Yilmaz said the government wants to avoid a rapid drop in inflation that could hurt economic growth, jobs and social stability.
Turkiye’s economic program was established in 2023 after years of unorthodox easy money that aimed to stoke growth but that sent inflation soaring and the lira plunging. The program aims to dislodge high inflation expectations while boosting production and exports, in order to address long-standing current account deficits.
The central bank, having raised interest rates as high as 50 percent in 2024, eased policy through most of last year, bringing the key rate down to 38 percent.
Asked whether lower rates could trigger an exit from the lira currency, Yilmaz said: “What matters is real interest rates. Lowering rates as inflation falls does not affect real rates, so we do not expect such an impact.”
He added that the government will strengthen mechanisms that selectively support companies while improving overall financial conditions.
Turkiye to forge on with tight economic policy, some fine-tuning, VP Yilmaz says
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Turkiye to forge on with tight economic policy, some fine-tuning, VP Yilmaz says
- The central bank forecasts inflation between 13-19 percent by end-2026
The UN says Al-Hol camp population has dropped sharply as Syria moves to relocate remaining families
The UN says Al-Hol camp population has dropped sharply as Syria moves to relocate remaining families
- Forces of Syria’s central government captured the Al-Hol camp on Jan. 21 during a weekslong offensive against the SDF, which had been running the camp near the border with Iraq for a decade
DAMASCUS: The UN refugee agency said Sunday that a large number of residents of a camp housing family members of suspected Daesh group militants have left and the Syrian government plans to relocate those who remain.
Gonzalo Vargas Llosa, UNHCR’s representative in Syria, said in a statement that the agency “has observed a significant decrease in the number of residents in Al-Hol camp in recent weeks.”
“Syrian authorities have informed UNHCR of their plan to relocate the remaining families to Akhtarin camp in Aleppo Governorate (province) and have requested UNHCR’s support to assist the population in the new camp, which we stand ready to provide,” he said.
He added that UNHCR “will continue to support the return and reintegration of Syrians who have departed Al-Hol, as well as those who remain.”
The statement did not say how residents had left the camp or how many remain. Many families are believed to have escaped either during the chaos when government forces captured the camp from the Kurdish-led Syrian Democratic Forces last month or afterward.
There was no immediate statement from the Syrian government and a government spokesperson did not respond to a request for comment.
At its peak after the defeat of IS in Syria in 2019, around 73,000 people were living at Al-Hol. Since then, the number has declined with some countries repatriating their citizens. The camp’s residents are mostly children and women, including many wives or widows of IS members.
The camp’s residents are not technically prisoners and most have not been accused of crimes, but they have been held in de facto detention at the heavily guarded facility.
Forces of Syria’s central government captured the Al-Hol camp on Jan. 21 during a weekslong offensive against the SDF, which had been running the camp near the border with Iraq for a decade. A ceasefire deal has since ended the fighting.
Separately, thousands of accused IS militants who were held in detention centers in northeastern Syria have been transferred to Iraq to stand trial under an agreement with the US
The US military said Friday that it had completed the transfer of more than 5,700 adult male IS suspects from detention facilities in Syria to Iraqi custody.
Iraq’s National Center for International Judicial Cooperation said a total of 5,704 suspects from 61 countries who were affiliated with IS — most of them Syrian and Iraqi — were transferred from prisons in Syria. They are now being interrogated in Iraq.
