Gov’t trusts Central Bank: finance minister

SİNOP - Doğan News Agency

AA Photo

Finance Minister Mehmet Şimşek has backed the Central Bank amid increasing criticism against the bank from political circles due to its rate policies.

“The Central Bank has performed well and the government trusts the bank,” Şimşek said in a meeting in the Black Sea province of Sinop on Feb. 14.

“It is important for Turkey to move forward on a rational basis by making the right choices,” he added. 

About the heated discussions regarding the Central Bank, Şimsek said he does not find such discussions beneficial for Turkey.

“Such discussions are held in many other countries, but keeping this topic at the top of agenda is not beneficial for Turkey. … Everyone has the right to express their ideas. The point is moving ahead on a rational basis by doing the right things. We trust the Central Bank and there is no hesitation concerning its moves,” he said.

Şimşek noted the Central Bank has performed well during the latest difficult times.

“The real rates were around 25-30 percent 12 years ago, but they are about 1 percent right now, which shows Turkey has achieved a lot in the last years. The budget discipline and the decreasing inflation rate have played a great role, as well as the maintenance of political stability and the structural reforms,” he said.

Making currency rate policies a point of daily political polemics in a country has many negative effects, pushing the country’s risk premiums and rates up and making it less predictable, Deputy Prime Minister Ali Babacan said on Feb. 12 during a televised interview broadcast on state-run TRT.

“It is good that Turkey’s Central Bank communicates about currency rates when necessary,” Babacan said.