Turkey Central Bank Balancing Act Seen Working, For Now
- Real policy signal will be in tomorrow’s funding mix: SocGen
- Higher rate gives cenbank more room to tighten, Nomura says
Pedestrians pass a giant Turkish national flag hanging above a DenizBank AS bank branch in Istanbul
Photographer: Ismail Ferdous/BloombergThis article is for subscribers only.
Stuck between markets demanding higher interest rates and a government keen on supporting growth, Turkey’s central bank looks set on trying to please both.
The monetary authority raised its highest interest rate on Thursday while leaving all of the other rates unchanged, matching the median estimate in a Bloomberg survey. The lira rallied as the move was seen paving for they way for tighter policy -- if needed -- and serving as insurance against bouts of currency weakness.