Turkish Central Bank Governor Durmus Yilmaz said on Saturday that recent additional measures taken by Central Bank should be considered as precaution against a new business cycle which we think would have influence over the world.
Addressing a panel discussion on "Monetary Policies" organized by Chamber of Industry of Central Anatolian province of Konya, Yilmaz said downside risks and fragilities in economies of developed countries continued.
"In spite of this, growth performance of developing countries follow a more affirmative course," he said.
Commenting on low level of public debt stock in Turkey, Yilmaz said, "even though healing in employment conditions continue in Turkey, it is estimated that unemployment rate will continue in high levels when compared with the period before crisis."
Yilmaz underlined that stagnant course continued in global loan markets, adding that there are high rises in credit volume in Turkey when compared with the developed country economies.
Governor Yilmaz said essential target of the Central Bank was to ensure price stability, underling that, "in financial system, it is among the basic duties of Central Bank to take regulatory precautions.
"Central Bank is responsible for financial stability in Turkey. Turkey pursued a cautious monetary and financial policy since 2002 and prevented eruption of financial risks within the country as a result of regulatory and supervising implementation.
Thanks to those policies Turkey managed to be among the economies which has emerged from the global crisis the most rapid way. Recent additional measures taken by Central Bank should be considered as precaution against a new cycle which we think would have influence over the world," Yilmaz said.
Yilmaz said, "due to the problems the developing countries experience, foreign demands make slow progress. Difference of growth between the developed countries and developing countries have risen to very high levels and this will continue in the medium term. Uncertainty and weakness in global economy lessen appetite for direct investment."
Central Bank Governor said they expected inflation to continue to drop and be around 6.5 percent till the end of the year, which is the year-end target of CB.
Yilmaz said Turkish economy made very big sacrifices to reach a price stability, however the price stability could not be provided fully despite the achievements.