Şimşek calls Turkey’s 2027 inflation target realistic
Turkish Finance Minister Mehmet Şimşek said markets consider the 2027 inflation target set out in the medium-term program realistic, provided that the war with Iran does not continue next year. He said this in an interview with Haberturk, Asharq Al-Awsat reports.
Government forecast
The Turkish government expects inflation to slow to 28.4% this year and to 21% in 2027. According to government forecasts, it is expected to reach a single-digit level in 2029 — about two years later than previously anticipated.
Şimşek also said that Turkey should generally operate under a floating exchange rate regime, as this allows for an appropriate response to economic shocks.
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Wages and foreign currency proceeds
According to the minister, Turkey has always increased payments to all civil servants and pensioners by at least the inflation rate and will continue this practice.
He added that after inflation falls to a single-digit level, the authorities may abolish the requirement for mandatory sales of export foreign currency proceeds and move to a freer regime. At the same time, Şimşek noted that conditions for such a decision have not yet emerged, and the government will consider the issue once they do.
Sanctions against the bank
The minister also commented on U.S. sanctions against Golden Global Yatirim bank. According to him, the bank is small and does not pose a systemic risk to Turkey’s financial sector. Şimşek urged other banks to comply with international standards and strengthen compliance with relevant requirements.
