Turkey’s bonds climbed, with yields falling the most in six months, after Prime Minister Recep Tayyip Erdogan called on the central bank to cut interest rates. The lira rebounded after U.S. employers boosted payrolls.
Turkey’s central bank should call an off-schedule monetary policy meeting to cut interest rates after local elections reduced concerns that political stability was in danger, Prime Minister Recep Tayyip Erdogan said today.
Turkey’s stated aim of zero real interest rates is an “ideal” scenario and the central bank proved last month that it’s ready to raise borrowing costs when needed, Deputy Prime Minister Ali Babacan said.
Turkey is “serious” about curbing credit growth and the current-account gap and will use the budget and possibly sanctions on individual banks to ensure its goals are met, Deputy Prime Minister Ali Babacan said.
Turkey is pointing to its determination to inject momentum into a languishing European Union membership bid to restore confidence amid political and economic turmoil sparked by a corruption probe last month.