The chief executive of Turkey’s Isbank said the government’s economic programme, partly focused on cutting inflation, may need a pause before continuing to avoid side effects.
Referring to the country’s disinflation drive, CEO Hakan Aran said that focusing on a single goal for too long could cause side effects, adding that parties are doing whatever necessary for the programme to succeed and deliver results.
“I do not see this as a short-term programme. I also do not see it as a programme that can be continued for too long,” Aran said at an event in Istanbul.
Aran said tight policies should be eased once certain targets are met.
“When we reach a certain point… taking a break and doing what is needed during that break, then resuming after some recovery in industry and the real sector would be much healthier.”
“The central bank’s rising reserves, our capacity to repay external debt, incoming foreign investments, and improving expectations… All these show the programme is gradually starting to deliver results and restore confidence among all parties.”
(Reporting by Ebru Tuncay; Writing by Ezgi Erkoyun; Editing by Daren Butler)
