Deputy Prime Minister Şimşek: Volatility is Not Peculiar to Turkey

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Deputy Prime Minister in Charge of Economy Mehmet Şimşek stated that the interest rate hike which was put into force by the Central Bank of the Republic of Turkey on May 23 was a belated decision. Şimşek also emphasized that "Turkey will not obstinate with the markets."

Some of the highlights from the statement of Şimşek are as follows:

"Central Bank took a strong step, albeit late"

"The Central Bank took a strong step, albeit late. It is sometimes expected that the markets will normalize shortly after, but it does not happen like that. It takes time for the markets to be back on track.

"The US dollar has been increasing in value against all currencies. These trends are not peculiar to Turkey. In fact, with its strong response, the Central Bank has shown that it is independent and will do what is necessary if needs be.

"This volatility, this loss of value in the currency is not something peculiar to Turkey".

"The State of Emergency affects investments, but..."

"They say, 'If there was not the State of Emergency, the Turkish Lira would not decrease so much in value.' Yes, it is true that the State of Emergency affects the investments, but why was the State of Emergency imposed? It was imposed because of a necessity".

"The independence of Central Bank is important"

"We will take a step back from neither the independence of the Central Bank, nor the market economy.

"I did not express any opinions as to what the Central Bank should do and when. The independence of the Central Bank is of utmost importance, we attach importance to it as the government. The monetary policy is an important area." (EKN/SD)