Turkish Economic Team Holds First Meeting with Investors Since Policy Shift

Two sources indicated today, Friday, that the new economic team in Turkey held its first meeting with dozens of international investors, pledging to continue raising interest rates to curb inflation even amid a slowdown in economic growth. The meeting included Finance Minister Mehmet Şimşek and Central Bank Governor Hafize Gaye Erkan, who discussed monetary and fiscal policy as well as economic forecasts. One source noted that Şimşek emphasized that reducing inflation is the priority and that the policy is moving toward normalization. The source also mentioned that Şimşek informed investors that Erdoğan fully supports tightening monetary policy. Under Erkan's leadership, the central bank has raised the main interest rate by 900 basis points to 17.5 percent since June; however, the pace of tightening has not met expectations. Last week, it raised its year-end inflation estimates more than doubled to 58 percent in line with expectations.