Turkish Rate Guidance Intact After Five Cuts Went ‘Bit Deep’

Turkey’s central bank is standing by its promise of a positive real rate of return to investors despite five interest-rate cuts that Governor Murat Uysal conceded “were a bit deep.”

Speaking Wednesday in interviews with Turkish TV at the World Economic Forum in Davos, Switzerland, Uysal said returns will run above zero based on the projected path of slowing inflation. The governor, installed last July, also downplayed concerns that the lack of a buffer against market sell-offs could now present a threat by saying the country has had negative real rates in the past.