New Turkish Finance Minister vows to seek macro-financial stability

The new finance minister TürkiyeMehmet Simsek, promised this Sunday that his management will focus on seeking the macrofinancial stabilityreduce the inflation and boost an economy “rule-based and predictable”.

“Türkiye has no choice but to return to rational ground. A rule-based and predictable Turkish economy will be the key to achieving the desired prosperity”, declared Simsek, quoted by the Turkish newspaper Daily Sabah, after taking office today in a ceremony in Ankara.

These statements by Simsek are interpreted by analysts as a clear indication that the Turkish president, Recep Tayyip Erdogan, has decided to turn around monetary politics of the country in his third term, which began yesterday, Saturday.

This would mean a move away from economic policies focused on low interest rates despite high inflation, which isn April it stood at 43.7% year-on-yearpromoted by the Erdogan government in recent years.

Following that line demanded by the president to encourage spending and alleviate the indebtedness of companies and individuals, the Turkish Central Bank lowered the type of interest official from 19 to 9% between mid-2021 and early 2023.

“It is vital for our country to reduce inflation to single digits again in the medium term, increase predictability in all areas and accelerate the structural transformation that will reduce the current account deficit”, the new minister said today.

Simsek already held the Finance portfolio between 2009 and 2015, and until 2018 he was Deputy Prime Minister responsible for the Economy.

Source: EFE

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