In the OVP, which is prepared every year by the Ministry of Treasury and Finance and the Presidency's Strategy and Budget Directorate, great importance is attached to price stability under the heading of basic objectives.
According to the announced text, inflation will be reduced to single digits at the end of the period, a tight monetary stance and fiscal discipline will be the basic macroeconomic policy tools along with structural transformations, and in this context, steps will be taken to reduce input costs and increase supply. Additionally, according to the text, special attention will be given to green and digital transformation.
According to the program content, monetary, fiscal and income policies will be implemented synchronously and thus price stability will be prioritized. According to the statement, it is aimed to reduce the annual increase rate of CPI to single digits at 8.5% by the end of 2026. The policy to be implemented and the measures to be taken for this are as follows.
1. Inflation targeting will continue to be implemented in order to permanently establish price stability.
2. While the Central Bank uses all policy tools effectively in the fight against inflation, fiscal and income policies will be coordinated with monetary policy.
3. The floating exchange rate regime will be maintained, and financial stability will be ensured to support the economy in a way that ensures price stability.
4. The momentum of economic activity will be directed in a way that does not create inflationary pressure through the policies to be implemented.
5. Measures will be taken to prevent consumption increases that disrupt economic balances and feed inflation.
6. In line with growth policies based on investment-employment-production-export towards price stability, target-oriented financing opportunities will be provided to the real sector at affordable costs.
7. Considering fiscal discipline, administered prices will be determined in a way that will help reduce past inflation indexation behavior.
8. It will be supported that the main store of value in the financial system will be Turkish lira-denominated assets and that the weight of Turkish lira-denominated items in the assets and liabilities of households, companies and banking sectors will be increased.
9. Taking into account the developments in rent and housing prices, the housing supply that shrunk during the epidemic period will be increased rapidly, new social housing projects will be developed to compensate for the losses in the housing stock caused by the earthquake, and access to housing for low-income citizens will be increased.
10. Housing loans provided by the public under favorable conditions will support the acquisition of housing for the first time and will be provided to newly started projects at certain standards and within an affordable price range for low- and middle-income citizens.
