Mehmet Şimşek, Minister of Treasury and Finance, shared a statement after the Central Bank’s interest rate decision. Şimşek explained the framework in which the decision should be evaluated.
The Central Bank’s interest rate decision, which has been eagerly awaited for weeks, was announced on 22 June. The Central Bank raised the policy rate for the first time in 27 months, setting it to 15% with an increase of 6.5 points.
As the newly determined rate remained below the 20-25% expectation in international markets, there was a rapid rise in foreign exchange and gold. On the other hand, after the decision, an important statement came from the Minister of Treasury and Finance, Mehmet Şimşek.
“Rules-based monetary policy that focuses on price stability and protects financial stability…”
Mehmet Şimşek, who shared a statement on Twitter after the interest rate decision, stated that stability, trust and sustainability are the three concepts that embody the government’s vision of the Century of Turkey. Şimşek shared the framework that should also be evaluated in the decision taken by the Central Bank, and evaluated dollarization as a scourge:
“Our economic policy that we will follow in the coming period will be shaped around these concepts, and our main vision will be to ensure that our 85 million citizens and future generations live in peace and security, and to build an economic environment that will allow individuals and the society as a whole to reach happiness.
Sustainable growth is an indispensable prerequisite for prosperity and development. Sustainable growth is achieved through 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. Even if the financing conditions are very favorable and the profitability seems very attractive, it is not possible to provide permanent investment and employment growth without predictability. What will ensure predictability is trust. Confidence can only be achieved by implementing policies according to the rule.
– Rule-based predictable fiscal policy aiming at a stable structure in the public sector fiscal balance and sustainable budget financing,
– Policy framework based on the principles of market economy, free exchange regime, open economy
It will provide a very serious capital flow to Turkey. This will make financing investments and production much easier, and will ensure that the Turkish lira regains stability and becomes a reliable currency.
Having our money stable and secure is the most effective solution to avoiding the scourge of dollarization.
The basis of our economic philosophy, as stated in our most recent election manifesto, is included in the economic policies of our governments that have been in power since 2002; It is based on the framework determined by the principles of freedom of enterprise, market economy, open foreign exchange regime, floating exchange rate system and inflation targeting model.
Today, the decision taken by the Central Bank should be evaluated within this framework.”