Rabobank Evaluated The Economic Reform Package

Rabobank evaluated the Economic Reform Package. High inflation was highlighted in the evaluation.

Piotr Matys, Rabobank Emerging Markets Senior Currency Strategist, stated that the Economic Reform Package announced by President Recep Tayyip Erdogan puts the fight against inflation in the foreground. Piotr Matys, Senior Currency Strategist for Rabobank Emerging Markets, stated that one of the most urgent issues is high inflation, and noted that economic reforms contain market-friendly elements that can reduce inflation to lower levels. Stating that the establishment of the Price Stability Committee may result in structural changes in certain factors such as food prices, Matys explained that food prices are one of the main reasons that cause inflationary pressures. Stating that economic reforms are an indication that the government and the Central Bank are coordinating policies together for the 5 percent inflation target, Matys said that this target is an important component that can unleash the full potential of the Turkish economy and alleviate the high price burden on households. Bluebay Asset Management Emerging Markets Senior Strategist Timothy Ash said, "Economic reforms are positive in terms of directing companies that have a chance to survive even if they have bad loans." In addition, Ash said the reforms appear to be business and investor friendly.       Source: Bloomberg HT