Babacan voices backing for Central Bank policy

Deputy Prime Minister for the economy Ali Babacan yesterday expressed support for the Central Bank's latest moves to cool the economy, praising the bank's policies as "authentic." Meeting with some 50 bank CEOs and representatives of other financial institutions in Ankara late Wednesday, Babacan said that Turkey won't be seized by the populism seen in some developed countries, but is ready to take difficult measures if necessary. In its Monetary and Currency Policy in 2011 document released Tuesday, the CB suggests the government should help fight a widening current account gap, which in the 12 months up to this October soared to $40.8 billion, or nearly 5.6 percent of Turkey's gross domestic product. "We expect the current deficit to exceed $40 billion by the end of the year. But we don't foresee any problem financing it," Babacan said. "Our government won't hesitate to take measures to ensure confidence and stability. In our medium-term program, we aim to reach a 5 percent growth rate and reduce inflation to 5 percent for the 2011-2013 period. Our target is to protect and further strengthen financial and macroeconomic stability." He added, "If you look at our financial policies over the last few weeks, you can see that they are authentic."