Minister of Finance asks for “patience”: His new goal is to protect those with money from inflation

Treasury and Finance Minister Nureddin Nebati has stated that they are working on inflation-protected savings products. The Turkish Statistical Institute (TUIK) announced annual inflation in March as 61.14 percent. According to independent social scientists, this figure is close to 150 percent. Experts think that the official rate may even exceed 70 percent.

In countries that implement generally accepted economic policies, the central bank responds by increasing its policy interest rate in the face of high inflation. This decision, which also increases the interest rates applied by banks, provides both inflation protection for savings and softens inflationary pressure by reducing the demand for money.

However, while the opposite policy is being implemented in Turkey, the low interest rate environment is maintained against record-breaking inflation due to President Tayyip Erdoğan’s “interest rate is the reason and inflation is the result” approach.

“WE WILL BRING INFLATION TO REASONABLE LEVEL AT THE END OF THE YEAR”

In such an environment, Nebati had to “change” his inflation forecasts every time he spoke. Earlier he had made forecasts inflation would be controlled in January, April and summer months, respectively, He added a new one to his forecasts at his meeting with business representatives in Mardin this time and  said, ”We will bring it to a reasonable level at the end of the year.”

Source: diken.com.tr/nebati-sabir-istedi-yeni-hedefi-parasi-olani-enflasyondan-korumak/