Turkish President Recep Tayyip Erdogan has entrusted his “new economic team” with the task of reducing inflation to single digits, from the current inflation rate of 40%. Bloomberg reports.
“Now that the election is over, we have a better grip on inflation,” Erdogan said in a television interview. “It’s up to us to bring inflation down to single digits. This will be the priority of the new economic team”.
Because Erdogan has deliberately kept interest rates very low, the inflation rate has exploded. Furthermore, it has caused a real exodus among investors. In an effort to keep the lira stable, the Turkish central bank has depleted most of the country’s reserves. Despite this, the lira is still 20% lower than the dollar.
The Simsek effect
Investors are therefore anxiously awaiting the steps newly appointed Finance Minister Mehmet Simsek and Turkish Central Bank Governor Hafize Gaye Erkan will take to end Erdogan’s monetary policy, which was rife with behind-the-scenes politics to push in the lyre. The Turkish central bank will hold interest rate talks on June 22.
Source: BNR
Sharon Rock is an author and journalist who writes for 24 News Globe. She has a passion for learning about different cultures and understanding the complexities of the world. With a talent for explaining complex global issues in an accessible and engaging way, Sharon has become a respected voice in the field of world news journalism.
