Turkey might need fresh tightening of monetary policy

Turkish Deputy Prime Minister Ali Babacan said Turkey might need fresh tightening of monetary policy and the government isnt afraid of it.

Turkeys economy will be walking not running this year, Babacan said in an interview with CNBC-e in Davos, where he is attending the World Economic Forum.

BABACAN DISMISSED INTERNATIONAL MONETARY FUND PROJECTIONS

4 percent growth this year
Turkey stands by its forecast of 4 percent growth this year, Deputy Prime Minister Ali Babacan said, dismissing International Monetary Fund projections that the economy may barely expand.

OUTLOOK COULD CHANGE COMPLETELY
The global environment is uncertain and there are major decisions to be taken in developed nations in the next four or five weeks that could change the outlook completely, Babacan said in a televised interview from Davos today.

TURKEY SEES NO NEED TO CHANGE ITS FORECASTS
The IMF is generally more negative on European growth prospects than other bodies and Turkey sees no need to change its forecasts, he said.

IMF STAFFS PROJECTION: AVERAGE 0.4 PERCENT
Turkish economic growth may slow to an average of 0.4 percent this year, from 8.3 percent in 2011, according to the report prepared by IMF staff for a meeting of officials from the Group of 20 developed economies in Mexico City on Jan. 19.

In the fourth quarter of 2012, the economy may contract 0.2 percent, it said. The projections dont necessarily reflect the views of the IMF executive board, the report said.

WE WONT ALLOW THE ECONOMY TO FALL INTO RECESSION
Babacan said, they wont allow the economy to fall into recession.

BASCI: TURKEY CAN COMFORTABLY ACHIEVE THE GOVERNMENTS GOAL OF 4 PERCENT GROWTH
The funds forecasts stress downside risk and Turkey can comfortably achieve the governments goal of 4 percent growth, central bank Governor Erdem Basci said today in an interview from Davos with BloombergHT television.

TURKEYS CENTRAL BANK FORSEES NO MAJOR RISK
Turkeys central bank has taken steps on inflation and foresees no major risk, governor Erdem Basci said in an interview with Bloomberg HT television from the World Economic Forum in Davos today.

Bloomberg