Central Banks
Turkey Central Bank Says Rate Cuts Are ‘Not on Autopilot’
- Central bank shocks investors with higher inflation forecasts
- Governor Karahan says new outlook doesn’t signal looser policy
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Turkey’s central bank pledged to keep monetary policy tight amid a deteriorating inflation outlook, saying that it might even pause interest-rate cuts if price pressures intensify.
“We’re not on autopilot. We would assess all options if there was a deterioration in inflation outlook,” Governor Fatih Karahan said on Friday in Istanbul, where he unveiled the bank’s latest inflation report. Those options include changing the pace of rate reductions — 250 basis points thus far — or even putting them on hold, he said.