Minister of Treasury and Finance Mehmet Simsek emphasized that the 25% limit on rent increases will not continue and said, “I do not see any reason for it to continue, I think it should not. Therefore, there is no work in this direction. That regulation had already been made for a while.”
Minister of Treasury and Finance Mehmet Simsek answered TRT News Channel Coordinator Mücahid Eker’s questions regarding the agenda in his TRT News special interview.
Stating that the 25% limit on rent increases will not continue, Simsek said:
“I don’t see any reason for it to continue, I don’t think it should. Therefore, there is no work to continue in this direction. That arrangement had already been made for a while. I cannot comment on a decision that has not been made on behalf of our government, but I think it is very likely that it will not continue.”
“We cannot get anywhere by directly intervening in the pricing of products.”
Simsek continued his speech as follows:
“I believe that prices should not be intervened. Intervention in the market is possible through incentives that will increase supply. That is the right thing. It is necessary to ensure that prices go down through the increase in supply. For this, of course, we attach importance to more production, more employment and exports. Our interventions will be more within the following framework: We will give a road map to the market. We give a 3-year inflation target and a 3-year growth perspective. These are important for directing the market and for discipline in the public sector. But mainly investment. We spend money within the budget. We say, let’s make these expenditures, but let’s concentrate these expenditures in the productive area. In other words, let’s channel it to areas that will increase supply-side production. Food supply is one of them. When competitiveness increases and productivity increases, unit prices and unit costs decrease. Therefore, in this context, of course, we cannot leave everything to the market. We cannot get anywhere by directly intervening in the pricing of products. That’s why we will balance the composition of growth instead. We will put into effect policies that will increase production. We will take steps to increase efficiency and competitiveness.”
Source: Trthaber / Prepared by Irem Yildiz