Turkey’s Finance Chief Says Erdogan Fully Behind New Policy Path

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Turkish President Recep Tayyip Erdogan is fully onboard with new policies that require monetary tightening, according to the country’s finance minister, as uncertainty lingered in the market over his commitment to ending an era of cheap money.

“Our president gives full support, be it the disinflation program, be it fiscal policy,” Mehmet Simsek told reporters in Ankara. “We are not just sensing this, we are also seeing it.”

“There’s not even the slightest hesitation” in Erdogan’s position, Simsek said. “We will continue doing what this program requires.”The comments mark an attempt to dispel concerns about the extent of Erdogan’s commitment. Investor doubts were evident in the currency market, with the lira depreciating every day this week.

“Disinflation is our priority,” the central banker said. She refrained from mentioning a terminal rate, saying “it’s not right to put out interest-rate numbers.”

 

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