Ministry dismisses report on Şimşek’s “rate cut expectation’
ANKARA
The Treasury and Finance Ministry has denied a report claiming that Finance Minister Mehmet Şimşek expects the Central Bank to slash interest rates in July.
The ministry issued a statement on July 16 in response to a report by daily Türkiye.
The daily claimed that Şimşek told lawmakers from the ruling Justice and Development Party (AKP), during party’s two-day camp in the capital Ankara's Kızılcahamam district, that “he expects a rate cut this month.”
The ministry described the report as misleading, noting that Şimşek’s remarks were misinterpreted.
Şimşek did not make any personal assessment regarding interest rates, said the ministry.
During the meeting, Şimşek voiced the market’s expectation of an interest rate cut, but this was misrepresented as his personal forecast, the ministry explained.
“It is important not to rely on speculative reports or behind-the-scenes claims that cannot be verified,” the ministry said.
The Central Bank is scheduled to hold its next rate-setting meeting on July 24.
In fact, the slowing inflation is fueling market expectations of an interest rate cut this month.
In June, the bank kept the policy rate, the one-week repo auction rate, unchanged at 46 percent.
