The increases for civil servants and workers will be adjusted from now on according to the inflation target.

Mehmet Şimşek, Minister of Treasury and Finance, said: “There will be no change in the exchange rate regime. We will give very strong support to investors and exports”.

Şimşek responded to journalists’ questions about the Medium-Term Program. Başan Şimşek stated that the initial reactions to the OVP were positive, saying that President Erdoğan fully supports the disinflation program.

In a statement at the press conference held in Ankara, Şimşek said: “Our dialogue with investors is strong, we are starting meetings with investors from Japan.”

Minister Şimşek said: “From now on, salary agreements will be made according to the inflation target” for salary increases for civil servants and workers working in the public sector.

‘ERDOĞAN’S SUPPORT IS COMPLETE’

Şimşek said that President Recep Tayyip Erdoğan fully supports the disinflation program.

“The full support of our President is very important to the success of this program. We don’t just feel it, we see it,” Şimşek said, adding that they will not leave investors stranded in the G20, Germany, New York, London, Asia and the Middle East until the end of the year.

Şimşek stated that he believed the outsourcing portion of the program would be very strong, saying, “The result is close in the United Arab Emirates.”

Noting that there is no exchange rate target, Şimşek said: “Due to the nature of the business in the MTP, there should be an exchange rate estimate.”

Stating that the need to rebalance domestic demand is very clear, Şimşek said: “Domestic demand will slow down and we will give very strong support to investments and exports.”

Şimşek stated that they would first strengthen the reserves and then abandon the protected currency deposits, and announced that they envisaged a new private pension model with the employer’s contribution. Şimşek said that the purpose of this model is to increase the duration of stay in the system and the amount of funds.

Şimşek added that they will announce the details of the OVP in the coming days.

‘GROWTH AND INFLATION TARGETS ARE CONSISTENT’

Vice President Cevdet Yılmaz made remarks at the meeting on the Medium Term Program (MTP).

Yılmaz stated that the MTP’s greatest strength is President Recep Tayyip Erdogan’s statement: “As a government, we support the MTP”, saying: “This is the most important element that will ensure the implementation of the plan.”

Yılmaz affirmed that the growth and inflation targets are consistent and said that the composition of growth will not increase inflation, but will contribute to disinflation.

Yılmaz affirmed that they have no foreign exchange targets, saying: “The free market is essential.” Yılmaz affirmed that the current surplus target has not been abandoned, but the process will take time, saying, “We will continue to take the necessary measures to achieve this target.”

SQUEEZE THE EMPOWERMENT OF ERKAN

Central Bank (CBRT) President Hafize Gaye Erkan also made remarks at the meeting:

Erkan affirmed that the deterioration in the behavior of prices was worse than expected and that oil pressures became more evident, raising the possibility of pushing inflation above the upper range of the forecast (62%), and said: ” We decided that it would be more accurate to make a forecast that takes into account the upside risks to MTP (inflation).”

Erkan affirmed that the monetary tightening will continue until a significant improvement in inflation is achieved, saying: “Although there is a risk of a delay in solving our inflation target path in 2024, we are willing to do whatever it takes to ensure disinflation in 2024.”

Erkan stated that the goal is to keep the balance of foreign exchange protected deposits (KKM) stable for the time being, saying: “We will continue with a calm but determined strategy in KKM.” Stressing that disinflation is the first priority, Erkan used the phrase “There is no concession on this.”

Erkan stated that the rate of return from the system to TL will be stable and gradual, saying: “We see the perception of price stability and financial stability taking place in the last period, it has triggered capital movements and we anticipate this to continue. “

FOREIGN INVESTOR EMPOWERMENT

Erkan said investor appetite for Turkey is high: “We expect an increase in investor interest in bonds.”

Erkan affirmed that the support given by the World Bank to the Turkish economy is important, saying: “This decision is an indication of the support given to the coordination of correct monetary and fiscal policies, a resolute and stable Central Bank and a strong PMP. .”