Erdogan Defied as Bank Funding Costs Signal Cuts Ending
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Turkish Central Bank Governor Erdem Basci is pushing back against government demands to keep cutting borrowing costs, raising average funding rates for banks.
Should this month’s increase hold -- it was four basis points through yesterday -- the jump would represent the first time Basci has lifted the average charge since March, according to data compiled by Bloomberg. Policy makers may be reacting to the lira’s 1 percent drop this month and a 76 basis-point surge in two-year note yields, the most worldwide.