Turkey’s Finance Minister Şimşek: “We will take additional steps to tackle inflation”

Minister Şimşek made a statement saying, “We will take additional steps to support disinflation, mainly focusing on fiscal policy and structural reforms,” and also mentioned that strong public sector savings would come into play in the second half of 2024.

Mehmet Şimşek, the Minister of Treasury and Finance, spoke at the Uludağ Economy Summit. Minister Şimşek mentioned, “A normalization process in monetary policy was necessary for the transition to disinflation, and we have achieved this as stated by our Central Bank,” adding, “We will take additional steps to support disinflation, mainly focusing on fiscal policy and structural reforms.”

Şimşek stated that public sector savings would come into effect in the second half of 2024, saying, “This year, we will focus on expenditure. Reviewing expenditures is a process, and we have finalized our work on savings. We will soon share some details and take the necessary steps.”

“INFLATION WILL DECREASE RAPIDLY IN THE SUMMER MONTHS”

Minister Şimşek also noted, “Inflation will decrease rapidly in the summer months due to base effects and the impact of the program. The difference between market inflation expectations and our targets will close in the summer.”

Regarding the evaluations of rating agencies on Turkey, Şimşek commented, “I believe that with the continued strong implementation of the program, Turkey’s credit rating will improve.”