Ankara: After the re-election of President Recep Tayyip Erdogan, his government has adopted new economic policies, the first step of which is to appoint Mehmet Simsek as the Minister of Finance and Hafez Gaye Erkan as the head of the Central Bank.
Erdogan’s new cabinet plans aim to deal with a devastating economic crisis that includes high inflation, a record devaluation of the lira, a cost-of-living crisis and a shortage of foreign reserves.
To solve the above-mentioned problems, under the new policies, the Turkish Central Bank has increased the interest rate from 15% to 650 points. This is the first increase since early 2021.
On the other hand, Justice Minister Yilmaz Tanak said that the government is working on a measure to limit the increase in annual rents to a maximum of 25 percent. The government introduced the measure in June last year to curb inflation, but it is set to expire next month.
Similarly, Labor Minister Vedat Asikhan has also announced a 34 percent increase in the minimum monthly wage in the country to 11,402 lira ($483).
It should be noted that Turkey’s annual inflation has been recorded below 40% last month after reaching more than 85% in October last year.
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