Yeni Şafak Challenges Şimşek Over Interest Rates

In a striking editorial shift, Yeni Şafak, historically one of the most ardent supporters of the AKP government, has intensified its public confrontation with Treasury and Finance Minister Mehmet Şimşek. In its April 10, 2026, headline, the newspaper published what many are calling an “economic manifesto” against the current monetary policy, signaling a deep divide within the conservative base over the path to disinflation.

Under the bold headline “Production Cannot Happen with High Interest,” the publication directly attacked the high-interest-rate environment, which currently sits at 37%.

The Argument Against the 37% Rate

Yeni Şafak’s critique focuses on the stifling effect of tight monetary policy on the “real economy”—the manufacturers, exporters, and small business owners who form the backbone of the AKP’s traditional electorate. Key points from the report include:

• Stagnant Investment: High borrowing costs are keeping investors on the sidelines, favoring risk-free returns over industrial expansion.

• Business Contraction: Small and medium-sized enterprises (SMEs) are reportedly downsizing operations to manage debt, raising concerns about long-term unemployment.

• The Growth Barrier: The newspaper argues that prioritizing disinflation through interest rates is creating an insurmountable barrier to the national goal of export-led growth.

Policy Exposure: High Rates are Here to Stay

Perhaps the most significant part of the report is the “disclosure” of the government’s long-term plan. Yeni Şafak claims that despite the outcry from the industrial sector, the Central Bank (TCMB) and the Ministry of Finance have no intention of lowering rates anytime soon.

“Interest is at 37%, and it is understood that the Central Bank will not pull high interest down for a long time. It does not seem possible for the industrialist, crushed under high interest, to invest, employ, produce, and export under these conditions.”

The “Scapegoat” Narrative

This escalating tension follows previous reports suggesting that some circles within the party may be preparing to frame Mehmet Şimşek as a “scapegoat” if the economic cooling leads to a significant recession or political backlash. By positioning itself as the voice of the “crushed industrialist,” Yeni Şafak is exerting pressure on the administration to pivot back to the “low-interest, high-growth” model that defined previous years.

As of now, the Ministry of Finance has not issued an official response to the editorial, maintaining its stance that price stability is the prerequisite for sustainable long-term production.

Source: halktv