Turkey cbank says may continue measured rate cuts
Turkey's central bank said on Monday it will continue short-term measured rate cuts if clear economic recovery is not seen, Reuters reported.
The statement confirmed the possibility of more bank rate cuts on the way after cutting interest rates to a new record low this month.
The central bank has slashed rates by 850 basis points since November due a sharp slowdown in econmic activity. Turkey's eocnomy shrank by 13.8 percent in the first quarter.
'If a clear recovery is not seen in economic activity, the central bank is still believes further measured interest rate cuts will be necessary,' said the bank in a statement.
Turkey's overnight borrowing rate is currently at 8.25 percent.
The bank also said it saw inflation remaining low in the long term, and that its quarterly inflation report would give more direction on its planned monetary policy for the medium term.
Turkey is expected to end the year with consumer inflation of around 6 percent, below its official target of 7.5 percent.
The central bank also said that fiscal discipline from the government would positively affect the decisions of the central bank.
Government sources have told Reuters that the government is working on several belt-tightening measures designed to reduce spending and ease the budget deficit.