Turkey’s Central Bank Urged by Minister to Consider Rate Action

July 21 (Bloomberg) -- Turkey’s central bank was urged by the country’s economy minister to start considering a reduction in interest rates.

“It is time for the central bank to clearly present action for cutting interest rates,” Zafer Caglayan said during an official visit to Japan, the state-run Anatolia news agency reported. “The central bank’s caution is very extreme.”

Turkey held its benchmark one-week rate at 5.75 percent and the overnight lending rate at 11.5 percent at the central bank’s July 19 policy meeting. Speculation of a rate cut has helped yields on two-year benchmark lira bond fall 70 basis points, or 0.70 percentage point, this month.

To contact the reporter on this story: Selcuk Gokoluk in Istanbul at sgokoluk@bloomberg.net

To contact the editor responsible for this story: Gavin Serkin at gserkin@bloomberg.net