Turkey’s President Erdogan said interest rates will fall slowly and gradually. With the Bank of Turkey refraining from a policy-making meeting later this week, it has receded its allegations of rapid rate cuts.
“Exchange rates and interest rates will fall slowly, gradually and without haste,” Erdogan told reporters on his way back from his visit to Albania, according to the state-run Anadolu Agency.
Turkey’s finance minister, Nevaty, said in an interview with Bloomberg last week that he wanted to see how the economy would develop in January-March (first quarter). The president’s remarks agree with this line.
The Bank of Turkey has announced that it will cut the policy interest rate by 5 points since September last year and suspend the easing until the end of March in order to determine the effect of monetary easing. The next policy meeting is scheduled for the 20th, and the president’s remarks suggest that the policy will remain unchanged.
news-rsf-original-reference paywall">Original title:
news-rsf-original-reference paywall">Turkey’s Erdogan Shifts Tone to Signal Slower, Gradual Rate Cuts(excerpt)
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