(Bloomberg) -- Turkish officials are readying to announce a series of fiscal measures as early as Monday to cut public spending in a bid to support the fight against rampant inflation, according to people with knowledge of the matter.

The government will introduce new fiscal measures and speed up structural reforms to strengthen the economic program, Treasury and Finance Minister Mehmet Simsek told a group of investors in Istanbul on Thursday, said the people who didn’t want to be named because the discussions were private.

The Treasury and Finance Ministry declined to comment. 

The measures underline the sense of urgency that policymakers feel to curb inflation as quickly as possible, with annual inflation expected to peak around 75% soon. The central bank said on Thursday it sees inflation ending the year at 38%. Central bank governor Fatih Karahan repeated that the central bank will do “whatever it takes” to fight inflation and attributed an increase in its CPI forecast to stronger domestic demand. 

More: Turkey Hones Rates Message for New Policy Era Riddled With Angst

Investors have welcomed the signals. Turkey’s 5-year credit default swaps drop 9 basis points to 275 basis points, the lowest level since 2020. Lira bonds rallied, with the yield on 2 and 10 year government bonds fell to 72bps and 79 basis points, respectively.

The government’s savings measures will include a review of expenditures, slow some public spending and reduce investments in some sectors, said the people who were briefed on the plans Thursday. 

Price stability, strengthening fiscal position, narrowing the current account deficit and structural reforms were highlighted as the country’s priorities in the presentation to the investors, they said. 

Simsek has been the architect of a policy turnaround since national elections about a year ago that saw the benchmark interest rate rise by more than 40 percentage points to 50%. 

As part of that shift, officials are also trying to narrow a bloated budget deficit that was tainted by pre-election and earthquake spending last year. Investors and economists say fiscal measures also need to be more supportive of monetary policy to achieve disinflation. 

--With assistance from Firat Kozok.

(Updates with lira and Turkey assets’ performance, adds chart starting in)

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