Int’l banks do not expect change in economic policies

In their assessments on the outcome of the March 31 local elections, Deutsche Bank and Goldman Sachs argued that the government is unlikely to change its economic policies.

Deutsche Bank in a report on April 1 that it is constructive on Turkish assets following the results of the March 31 elections.

President Recep Tayyip Erdoğan's initial statements after the elections indicated his ongoing endorsement of the current economic program, economists at Deutsche Bank wrote in a report on April 1.

"With the conclusion of the local elections, attention now shifts toward the policy framework and the trajectory of the orthodox economic policies that have been in place since last year's general elections," they said.

Meanwhile, Goldman Sachs commented in a note on the outcome of the elections that markets would likely welcome the fact that the government has recommitted to the current economic policy.

"Just maintaining current policies, which we expect to be the case, should in our view support capital flows in the coming weeks, and with the current account having structurally corrected sharply and seasonally going to improve, we think the lira should be much better supported than in recent months," it said.

As Türkiye has left the local elections behind, now it is time to focus on the economy and economic reforms, representatives of various business associations have said, stressing the fight against inflation and price stability.

There will be no elections in the next four years, stressed Rifat Hisarcıklıoğlu, the head of the Union of Chambers and Commodity Exchanges of Türkiye (TOBB), saying that this offers an opportunity.

"We must focus on the fight against inflation… We must take effective and decisive steps on...