It is expected that Mehmet Şimşek, who was appointed as the Minister of Treasury and Finance in the cabinet formed by President Recep Tayyip Erdoğan after the elections on May 28, will implement policies to address issues such as inflation, dwindling TCMB reserves, and cost of living.
Reuters analysis stated, “Mehmet Şimşek’s reappointment as the Minister of Treasury and Finance, being recognized as a respected and experienced policy maker by international investors, was welcomed with the hope that he has the capability to steer the country away from the fiscal cliff.”
However, the analysis also pointed out that more than just an appointment is needed to regain the confidence of investors affected by various market turbulences and to address the need for a departure from unconventional policies, such as keeping interest rates low despite rising inflation, which have been implemented for years.
Amundi asset management company’s expert Hakan Aksoy, who provided analysis to the agency, also highlighted that as the new Minister of Treasury and Finance, Şimşek’s initial statement focused on bringing “transparency, consistency, predictability, and compliance,” which increased optimism for a policy change going forward.
However, the analysis also pointed out that the direction of monetary policy, which is an important element for rebuilding a functioning market and regaining investor confidence both domestically and internationally, remains uncertain.