Central Bank will not hesitate to do what is necessary: Turkish PM

ANKARA

REUTERS photo

The Central Bank will not hesitate to take whatever steps are necessary after sharp falls in the Turkish Lira, Prime Minister Binali Yıldırım told reporters on Jan. 17 after a meeting the day before with top economy officials and President Recep Tayyip Erdoğan.

Yıldırım said at the meeting they held discussions on what needs to be done, while adding that the Central Bank is independent and it would be wrong to say what it should do, as reported by Reuters. 

Erdoğan held a meeting with top economy officials, including ministers, senior civil servants and Central Bank Gov. Murat Çetinkaya to discuss the recent volatility in the lira and other economic developments, according to sources.

“In the economy meeting yesterday, decisions have been reviewed. Issues on what to do were discussed. We will keep taking measures to meet the needs of the real sector. The Central Bank will continue to take whatever steps are necessary,” Yıldırım said. 

The losses in the lira have exceeded 7 percent, despite a recent recovery since the beginning of 2017, it became the worst performing emerging currency in the new year. 

Asked whether the Central Bank should hike rates in its upcoming monetary policy meeting on Jan. 24, Yıldırım displayed a neutral stance. “As the Central Bank is independent, it would be improper for me to make any announcement about such issues. The Central Bank will not hesitate about taking whatever measures are needed,” he said. 

The lira rebounded to 3.75 against the U.S. dollar on Jan. 17 following a number of key measures taken by the Central Bank after it reached 3.94 last week. 

Yıldırım also called on businesspeople to create opportunities for employment and not to halt making investments as “the foundations of the economy are robust.”