Economy Minister Nihat Zeybekci said that the government has the same objectives as the Central Bank, but they do not share the same views.
Welcoming presidents of various associations on Tuesday, Zeybekci said that even though inflation has not yet reached the desired level, it would drop to 5.5 percent by the end of 2015. Zeybekci also stressed that the current account deficit has performed very well and that the negative impact expected by the U.S. Federal Reserve's decision to hike interest rates, would be less than the positive impacts of the European Central Bank's (ECB) monetary expansion policy.
In reference to the interest policy of the central bank, Zeybekci stated that he still stands by his word that "the increase in the exchange rate should be left alone," which he stated when discussions about the increase in the exchange rates first emerged. "As long as we do not fall into traps and do not disrupt unity and solidarity," he added.
"Turkey's problem with the current account deficit has been eradicated," Zeybekci said, adding that usurers and speculators would not capitalize on such a healthy economy. "Turkey is displaying good performance in terms of external debt and has a strong banking structure despite everything. Our only problem is excessively high interest rates. We need acceptable interest rates that enable investors to satisfy their financial need at low cost," he concluded.
