Şimşek: We must be patient

Speaking to the Financial Times, Mehmet Şimşek made the following statement regarding the policy change implemented after the elections: “We are on the right track. We must be patient.” Treasury and Finance Minister Mehmet Şimşek stated that they aimed to “rebalance the economy and soften domestic demand,” and that patience was needed for the policy change process. Şimşek, who gave an interview to the Financial Times, stated that he supported President Recep Tayyip Erdoğan’s new economic policies and said: “We are on the right track. There is strong evidence that confidence is returning. However, we must be patient, we are still in a difficult process.” Noting that inflation will be in a “transitional phase” until the middle of next year, Şimşek stated that with the quantitative tightening measures, financial conditions are tighter than the CBRT policy rate indicates. Şimşek said: “You need confidence to reset inflation expectations.” Referring to companies’ and banks’ access to external resources, Şimşek said: “As we make progress, companies’ and banks’ access to international capital markets will improve, this is a critical issue. “From this point on, our job will become much easier,” he said.