Mehmet Şimşek “We will not do anything out of the ordinary while reducing inflation”

mehmet-simsek

Treasury and Finance Minister Mehmet Şimşek said, “We will not do anything extraordinary while reducing inflation, conventional monetary policies will be applied, tightening monetary policies will work. In the second half of the year, inflation will come down significantly.”

By 2028 we will have achieved price stability, the journey has begun. We are restoring fiscal health, repairing the damage from the big earthquake, reducing the shortcomings, and more importantly, we will implement structural reforms to sustain these gains. We are not going to do anything out of the ordinary in bringing down inflation, conventional monetary policies will work, monetary policy tightening will work. In the second half of the year, inflation will come down significantly. The path to disinflation is to bring inflation down to the mid-30s percent this year, to around 14 percent next year, and to single digits by 2026. This is in line with global experience.”

Reminding that the earthquake created a temporary large deficit, Şimşek said that the effect of this was temporary and that there would continue to be improvements in the current account deficit and GNP.

Current account deficit to fall below 30 billion dollars

“The current account deficit has already started to decline, we think we are on the right track. The current account deficit will fall below 30 billion dollars in the first half of this year. Growth in Turkey is strong. Turkey is one of the world’s leading growth markets in terms of growth. We are seeing a temporary slowdown, but structural reforms are one of the key areas to rebuild this growth and ensure sustainable high growth in the medium term.

“We aim for market inflation to fall below 40 percent”

Mehmet Şimşek said, “Since inflation expectations have improved, the market predicts that inflation will fall below 40 percent in the next 12 months, and the market is very close to the figures we are targeting now, which encourages us.”

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