April 11, 2016•Update: April 14, 2016
ANKARA
Ten years’ experience fighting inflation have shown that "a collective effort" is needed, Turkish Central Bank Governor Erdem Basci said on Monday.
"All institutions in the country must determinedly maintain the efforts that have been made in recent years in order to bring inflation down to five percent permanently," Basci told the annual meeting of Turkey's central bank in Ankara.
The annual rate of inflation in Turkey fell to 7.46 percent last month due to a sharp drop in food prices, according to the Turkish Statistical Institute.
"The decline in inflation is expected to continue. The measures taken have increased the resilience of the economy against shocks," Basci -- who is due to step down this month after serving his five-year term -- said.
Basci added that the country's economic growth potential may increase significantly by implementing structural reforms.
He said these reforms include improving human capital and labor market conditions, technology and innovation as well as infrastructure and savings.
The bank's normally innocuous general assembly, at which executives and technocrats are elected and reshuffled, has taken on greater significance this year ahead of Basci's planned departure on April 19.
The institution is in charge of the country's monetary policy and has often been at odds with government officials over interest rates, which the bank has kept relatively high to stabilize the lira. The government is in favor of lower rates to boost growth.
Turkey will announce a new Central Bank chief within days, Deputy Prime Minister Mehmet Simsek, who has responsibility for the economy, said on Monday.
“The process of appointing the next Central Bank governor has concluded,” Simsek told Anadolu Agency. “Today or tomorrow a new governor will be announced.”
He added that the new governor would “come from within the institution”.
In line with Simsek's remarks according to sources from Turkish Prime Ministry Office, the Central Bank's current vice-governor Murat Cetinkaya has been proposed to the Turkish cabinet.
After the cabinet's approval, the decision will be presented for President Recep Tayyip Erdogan's approval.
