The Turkish economic minister, Recep Onal, confirmed earlier this week that interest rates would not rise despite the country's growing account deficit.
Commenting in a news conference, the minister stated that “there is no intention of intervening with the interest rates. Our basic philosophy is to not intervene with the conditions of the market”... “Supply and demand will determine consumer credit,” he added. The statement came less than six months of Turkey’s $4 billion IMF-backed disinflation program.
Turkish bond-yields sharply rose on Tuesday, August 8, due to speculations of an interest rate intervention.
The three-year IMF disinflation program has slowed the Turkish Lira's rate of depreciation while lowering interest rates. — (Albawaba-MEBG)
© 2000 Mena Report (www.menareport.com)
