Turkey's Economic Policies... Will They Achieve Lira Stability?

Turkish Finance Minister Mehmet Şimşek stated today that the country is currently following predictable economic policies based on market economy principles, a free exchange rate system, and an inflation-targeting model. He anticipated that these policies would attract capital and stabilize the lira, which has recently depreciated against the dollar. Şimşek noted that price stability and monetary policy would support the implementation of these economic policies, particularly after the Turkish central bank raised the interest rate by 650 basis points to 15 percent. Previously, Turkey had adopted an unconventional economic policy focused on lowering interest rates, despite inflation reaching record high levels.