Economists Confounded as Basci Rates Go Symmetric: Turkey Credit
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Economists are split on whether Turkish monetary policy is looser or tighter after central bank Governor Erdem Basci cut one of his three interest rates while saying he’d use an experimental tool to manage liquidity.
BNP Paribas SA, Goldman Sachs Group Inc., Oyak Securities and Ata Invest interpreted the move as loosening policy to focus on boosting growth, while BGC Securities said it was contractionary. Morgan Stanley described it as “neither here nor there” and Finansbank called it “confusing.” The lira at first weakened before rallying, while two-year note yields rose and the 10-year rate fell.