BULLETIN

CENTRAL BANK OF
THE REPUBLIC OF TURKEY

Issue: 8
December 2007

GOVERNOR YILMAZ’S PRESENTATION
BEFORE THE COUNCIL OF MINISTERS

INSIDE:
2 Reserve and Risk Management at the Central Bank of Turkey
3 Publications and News

from the Central Bank of Turkey

4 At a Glance

In accordance with the Law on the Central Bank of
Turkey (CBT) and the principle of accountability, twice a year, the Governor provides the Council of
Ministers with information on current economic outlook and the monetary policy actions. In this context, Governor Durmuş Yılmaz made a presentation before the Council of Ministers on 12 November 2007. In the first part of his presentation, Governor Yılmaz pointed out the prerequisites to achieve sustainable growth rate and single-digit nominal interest rates. The Governor gave information about inflation developments, interest rate and the exchange rate policies of the CBT, growth, employment and balance of payments developments in the second part of his presentation.
The Governor stated that sustainable growth might only be achieved via establishing macroeconomic stability, continuing structural reforms and enforcing the principles of good governance.

1981 - 1989
1990 - 2001
2002 - 2006

Average
Inflation
43.4 %
74.0 %
15.9 %

Average
Growth
4.8 %
3.0 %
7.5 %

The Governor, underlining the necessity of price stability and sustainable public finance for
Source : TURKSTAT, CBT macroeconomic stability, pointed out that it is not possible to achieve sustainable and high growth rates without price stability. Reminding that the Turkish economy had experienced boom-bust growth cycles during the high inflationary period, Governor Yılmaz stressed that the annual average growth rate boosted to 7.5% since 2002, the year which inflation rate has started to decline.
Governor