At this point in my speech, I would like to underline that price stability has not yet been achieved in Turkey. As I have just mentioned, significant distance has been covered in the fight against inflation. However, it is a fact that inflation is still relatively high in Turkey compared to fellow developing countries. The process of the fight against inflation still continues. Within this framework, there are certain factors that need to be paid attention to, for price stability to be achieved in the upcoming period. The first one of these is ensuring that the increase in domestic demand continues to materialize in a controlled fashion. The second factor I would like to emphasize is avoiding reform fatigue. Several structural reforms have been made in the Turkish economy up until now. Yet there are still more reforms pending. . It should be remembered that maintaining the reforms made up to this point is not sufficient to attain positive outcomes from them, but making new reforms is also equally important. The third factor that requires attention within the framework of achieving price stability is the susceptibility of established economic balances to expectations. Therefore, developments that may adversely affect expectations should not be allowed to occur. The last factor that should be taken into consideration in this respect is the fact that since policymakers, both agricultural, cannot control them and energy prices may at times have adverse effects on the course of inflation.
Süreyya Serdengeçti: Basic changes in the Turkish economy - problems and solutions Opening speech by Mr Süreyya Serdengeçti, Governor of the Central Bank of the Republic of Turkey, on the occasion of the 73rd Shareholders’ Ordinary General Meeting of the Central Bank of the Republic of Turkey, Ankara, 12 April 2005. *  *  *  Esteemed Shareholders, Distinguished Guests and Dear Members of the Press; Welcome to the 73rd Shareholders’ Ordinary General Meeting of the Central Bank of the Republic of Turkey. Before I begin my speech, I would like to share with you the happiness that we have this year been able to achieve the single digit inflation figures that we have wished for many years and the Turkish lira has once again gained credibility. The main framework of my speech will cover the process that has brought us up to this point and what we need to do in order to achieve and maintain price stability. In other words, leaving aside the shallow evaluations stuck in the triangle of FX rates-exchange ratesinterest rates-stock market rates; the core of my speech today will focus on apart the basic changes in the economy, deep-rooted problems and the ways out of these problems. The Turkish economy has faced a problem of almost 30-years of high and chronic inflation. During this period, many programs have been implemented to push down inflation.