Erdoğan fully supports economic program: Şimşek
ANKARA
President Recep Tayyip Erdoğan has given his "full" support to the new economic policy, Treasury and Finance Minister Mehmet Şimşek has said.
Şimşek and Central Bank Governor Hafize Gaye Erkan met with journalists at a briefing on the government’s new medium-term program in the capital Ankara.
“We not only feel this support but also see it. There is no doubt about it,” Şimşek said.
First, the reserves will be bolstered, the minister said. “Then we will exit the KKM [FX-protected deposit account scheme]. We will share the exit strategy with the public,” Şimşek told reporters.
“We do not have a target for exchange rates, and there will be no change in Türkiye’s exchange rate policy,” he said.
Domestic demand, which needs to be rebalanced, will slow down, Şimşek said, adding that the government will support exporters.
From now on, wage increases will be in line with the targeted inflation rate, according to the minister.
The new economic program aims to bring down the inflation rate to single digits, Şimşek also said. “We are going through a transition period.”
He also noted that there will be meetings with foreign investors in different countries.
The Central Bank will continue monetary tightening until a significant improvement in inflation is achieved, Erkan told reporters.
“We anticipate that as the monetary policy starts to bear fruits in 2024, domestic demand will move closer to supply, and inflation expectations will be brought under control,” she said.
