Economy in Turkey: First statement from Minister Şimşek after Central Bank’s interest rate decision

In his first statement after the Central Bank raised the policy rate to 15 percent, Treasury and Finance Minister Mehmet Simsek shared following: “A predictable fiscal policy, a market economy, a free exchange regime, a policy framework based on the principles of an open economy will provide a very serious amount of capital flow to Turkey.”

Emphasizing “stability, trust, sustainability”, Şimşek said “The fact that our money is stable and secure is the most effective solution to get rid of the dollarization problem.”

Treasury and Finance Minister Mehmet Simsek made a statement on his social media account after the Monetary Policy Board of the Central Bank of the Republic of Turkey increased the one-week repo auction interest rate, which is the policy interest rate, by 650 basis points to 15 percent.

Minister Simsek said following on his Twitter account: “Predictable fiscal policy, market economy, free exchange regime, policy framework based on the principles of an open economy will provide a very serious amount of capital flow to Turkey.”

“The basic philosophy of the Turkish Century is embodied in three concepts: Stability, Trust, Sustainability … Our economic policy that we will follow in the coming period will also be shaped on the axis of these concepts, ensuring that our 85 million citizens and future generations live more prosperous lives in peace and security, and building an economic environment that will allow individuals and society as a whole to achieve happiness will be the main vision.”

“THERE IS NO PERMANENT INVESTMENT WITHOUT PREDICTABILITY”

Şimşek also shared following: “Sustainable growth is an indispensable prerequisite for prosperity and development. Sustainable growth is achieved by investments and employment growth on the one hand, and productivity growth on the other. The most important determining factor for investment and employment decisions is predictability. Although the financing conditions are very favorable, although profitability may be very attractive, it is impossible to achieve permanent investment and employment growth without predictability. What will ensure predictability is trust. Trust can only be achieved by implementing policies according to the rule.”