Turkey Would Have A Single Digit Inflation Rate In Medium Term, Simsek

ANKARA - Turkish State Minister Mehmet Simsek said Friday Turkey would have a single digit inflation rate in the medium term.
In an exclusive interview with the Anadolu Agency, Simsek said the Turkish government might invite an IMF delegation if the government decided favorably on `Preventive Stand-By`.
"As uncertainty prevails in food and energy prices globally, it is hard to make predictions in the short term. However, thanks to structural reforms made by the Turkish government, inflation figures will go down to single digits in the medium run," Simsek said.
"Rising inflation figures in Turkey are not due to monetary and fiscal policies. Inflation in Turkey is being affected by rising food and energy prices," Simsek noted.
"Last year, we were proposing a tighter fiscal policy in Turkey. Yet global economic conditions are changing very rapidly. We decided to focus on investments that would be to Turkey`s advantage in the long run," Simsek said.

-INDEPENDENCE OF CENTRAL BANK-
Touching on the Turkish Central Bank, Simsek said "the Central Bank has the ability to make independent decisions".
"I believe in the independence of the Central Bank and stability of prices," Simsek noted.
"Ever since I took my office as a minister, I have not made any comments on the policies of the Central Bank. The credibility of the Central Bank, stability of prices and low single digit inflation is highly important for us. I do always have respect for the decisions of the Central Bank," Simsek said.
"We have not assigned any task on Turkey`s economic growth to the Central Bank. The Central Bank`s primary goal is to maintain price stability," Simsek said.
In regard to inflation targeting, Simsek said the floating exchange rates that Turkey is implementing is an important system.
"We are not thinking about ending the floating exchange rates system as it is vital in absorbing global economic shocks", Simsek said.
"There is no perfect economic model in the world. Our system has advantages and disadvantages. What matters is Turkey`s economic interests," Simsek said.

-TURKEY WILL BE A LEADING COUNTRY IN FOOD PRODUCTS-
"We plan to increase Turkey`s food items production seriously and make Turkey a leading country in food products in the world. Our most prominent project in food production is South-Eastern Anatolia Project (GAP)", Simsek said.
"Next year, we will allocate 3.6 billion new Turkish liras to the GAP project. By the end of this year, we would have allocated 2.3 billion new Turkish liras to GAP (1 USD equals 1.24 new Turkish liras)", Simsek said.
"The GAP project will not merely increase agricultural production. It will help the employment of around four million people", Simsek said.

-TURKEY`S CREDIT RATING WILL IMPROVE-
In reference to Turkey`s global credit rating, Simsek said that the Turkish government had recently adopted a reform package on social security.
"We have made important reforms on energy and employment. These reforms will help Turkey`s credit rating to improve. Turkey is presently the 15th biggest economy of the globe", Simsek also said.
(SOL-MS)