This time, Mehmet Şimşek is in Yeni Şafak's crosshairs: Interest rate decision drew backlash

The Central Bank of the Republic of Turkey (TCMB) raised the policy rate by 350 basis points to 46 percent on April 18. While the decision was considered correct by economists in terms of market stability, it was met with strong backlash in the pro-government media. In particular, the newspaper Yeni Şafak openly targeted Treasury and Finance Minister Mehmet Şimşek and the Central Bank management.

HEADLINE DREW ATTENTION

In its April 19 issue, the newspaper Yeni Şafak described the interest rate decision as a "blow to the economy" with the headline "Another blow from the Treasury and the Central Bank." The report included the following statements:

"Following the chaos attempts carried out by the opposition through the streets to cover up their corruption and the protectionist steps taken globally, another blow to the economy came from the Central Bank, which has not moved out of the Treasury Ministry's orbit. Using the limited rise in foreign exchange demand as an excuse and ignoring the real sector's financing access problems, the Central Bank raised the policy rate by 3.5 points to 46 percent. Acting contrary to the business world's expectations of a rate cut, the Central Bank signed off on a decision that will further undermine slowing production."

ŞİMŞEK AND KARAHAN TARGETED

The report also drew attention to the fact that the interest rate decision came after the March 19 operation targeting Ekrem İmamoğlu, with the phrase "A decrease was planned before the operation," implying that the Central Bank was acting under political direction. Treasury and Finance Minister Mehmet Şimşek's economic policies and Central Bank Governor Fatih Karahan's practices have been placed in Yeni Şafak's crosshairs.

THEY HAD DONE IT BEFORE

The newspaper Yeni Şafak is known for its harsh criticisms of Central Bank administrations. The headlines published just before the personnel changes in recent years are noteworthy.

In March 2021, after then-TCMB Governor Naci Ağbal raised the policy rate from 17 percent to 19 percent, Yeni Şafak published the headline "On whose behalf did you carry out this operation?" Following these publications, Ağbal was dismissed and replaced by Yeni Şafak columnist Şahap Kavcıoğlu.

Similarly, in February 2024, after Hafize Gaye Erkan requested to be relieved of her duties, Fatih Karahan was appointed in her place. Karahan could not escape the newspaper's criticism either, as he continued the high-interest rate policy as soon as he took office. Yeni Şafak had announced the Central Bank's upward revision of its inflation forecast with the headline "Increased the forecast, blamed the public."

News Source: 12punto