OREANDA-NEWS. March 16, 2015. The Turkish central bank's hand must be strengthened by increasing its credibility, Finance Minister Mehmet Simsek said on Saturday.

The bank has found itself at the heart of a political storm in recent months, after sustained criticism of its rates policies by President Tayyip Erdogan alarmed markets and sent the lira plunging to record lows.

Erdogan, a vocal advocate of low interest rates to promote growth, has repeatedly lashed out at the bank's failure to aggressively cut rates in the run-up to crucial parliamentary elections in June.

The lira has lost more than 10 percent of its value against the dollar this year over concerns of political interference, although it has rallied in recent days after Erdogan met central bank governor Erdem Basci to discuss their differences.

Speaking at an economic conference in the western city of Bursa, Simsek said the recent currency volatility could have short-term adverse effects but said that the elections - in which the ruling AKP is expected to remain the largest party - would mark an end to recent economic fluctuations.

"After the election, Turkey will return to a high growth path due to its strong reform programme and political stability," he stated.

Simsek said the Turkish economy had a slow start to 2015 and that first quarter indicators were "not very good," but added that growth of close to 4 percent was achievable this year if conditions in Europe improved, geopolitical risks diminished and domestic demand increased.

The Turkish economy is thought to have grown less than 3 percent last year, according to officials, while inflation remains stubbornly above a 5 percent target set by the central bank.

Higher growth was necessary to avoid slipping into the "middle income trap", according to Simsek, and this would only be achieved through continued structural reforms.