Turkey's strengthening fiscal and monetary policy mix and reforms should help secure a soft landing for its economy, Deputy Prime Minister Mehmet Simsek said on June 12.

Ex-Wall Street banker Simsek, known as the ‘market friendly’ minister who leads the government’s economic team, made the comments on Twitter. He also said the government has full confidence in the central bank's management and is ready to support its disinflation efforts.

On June 11, analysts predicted an abrupt landing for Turkey’s economy, which they feel is overheating with double-digit inflation and a surging current account deficit, and increasing worries over debt repayment stress among Turkish companies.

With parliamentary and presidential snap elections due on June 24, the announcement of 7.4% GDP growth in the first quarter came as good news for the ruling Justice & Development Party (AKP( and Turkish President Recep Tayyip Erdogan, but the opposition is warning voters that the second half of the year will bring a lot of economic pain.

Despite the central bank’s attempts to get ahead of the monetary curve with two interest rate hikes since May 23, the Turkish lira (TRY), down more than 15% against the dollar in the year to date, was over June 12-13 sliding again. By around 13:05 local time on June 13, it stood at 4.6660. In early trading on June 12 it was at 4.52 levels. External factors including looming Fed and European Central Bank meetings as well as the coming Bayram/Eid holidays which will dry up liquidity were partly responsible, analysts said.