Turkey Says Central Bank to Do What Is Necessary Amid Volatility

  • Statement made after Turkey’s top policy makers met in Ankara
  • Meeting announced while currency worsened to record lows

Turkey Says Central Bank to Take Action

Turkey’s top policy board chaired by Prime Minister Binali Yildirim said after a surprise meeting that the central bank will take any measures necessary to keep inflation under control.

Economy Coordination Board met in Ankara on Friday to discuss how to insulate the economy from the recent volatility in financial markets, which policy makers decided were mostly due to global developments, the premier’s office said in a written statement following the 4-hour session. The event wasn’t originally in Yildirim’s agenda for the day but was announced around noon.

The panel of the country’s top policy makers -- including the central bank Governor Murat Cetinkaya, Deputy Prime Minister Mehmet Simsek, who is in charge of the Treasury, and Finance Minister Naci Agbal -- met as the lira was trading at record lows against the dollar. The Turkish currency fell as much as 1.1 percent against the greenback earlier Friday as sentiment against emerging markets remained sour and investors bet Turkish policy makers wouldn’t raise lending costs to bolster the currency when they gather for their monthly interest rates meeting on Nov. 24.

“Turkish central bank is closely following developments and will take necessary precautions in line with its price stability goal,” while reforms that will increase the economy’s resilience to shocks will be implemented, according to the statement.

The lira trimmed some of its earlier losses immediately after the statement was published and was trading 0.2 percent lower at 3.3756 per dollar at 10:09 p.m. in Istanbul.

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