Turkish central bank “whispering” to market: columnist
Turkish central bank officials are “whispering” their intentions on interest rates ahead of a decision this month, rather than providing hints to the market through normal channels, Hurriyet columnist Uğur Gürses said.
The central bank is using back channels with economists and analysts to make its views known, meaning that some investors are aware of its intentions, while others are not, Gürses wrote in a column for the daily Hürriyet newspaper.
“It is not right for the central bank to even give a hint of this to the markets before the meeting date. If there is an intention, they can announce an earlier date to the meeting and raise interest rates.”
Central bank officials have told some economists that they would raise rates should inflation accelerate. When the statistics agency announced on Dec. 4 that inflation in November increased to 13 percent, the lira strengthened against the dollar that day and in the early hours of the following day, Gürses noted.
The central bank’s Monetary Policy Committee will announce its decision on interest rates on Dec. 14.