Turkey vows to keep disinflation plan on track despite external pressures
Finance Minister Mehmet Şimşek said Turkey will stay the course on its disinflation program and maintain its medium-term targets despite a tough global environment.
During an international media session at the Presidential Complex on September 9, Treasury and Finance Minister Mehmet Şimşek reaffirmed Turkey's determination to follow its disinflation roadmap through 2029, even as global and geopolitical conditions remain challenging. He was accompanied by Vice President Cevdet Yilmaz and the head of the Presidency of Strategy and Budget, İbrahim Şenel, to present the country's 2027-2029 Medium-Term Program. Şimşek admitted that the program’s targets are ambitious and carry costs, but emphasized that the policy direction will not change.
He clarified that moving back to a free-floating exchange rate is desirable only after inflation is lower and expectations are anchored, labeling rumors of an imminent shift as baseless. The minister also refuted reports that the 2027 inflation target had been raised to enable looser monetary policy. Citing international experience, he explained that disinflation typically takes about 3.4 years, projecting a return to pre-shock inflation by the close of 2027.
