Everybody should back Central Bank: Governor

Neşe Karanfil - ANKARA

HÜRRİYET photo

Central Bank Governor Erdem Başçı, whose office term will terminate soon, said everyone should back the bank as the institution represents the dignity of this country, in his speech to the parliament.  He also signaled he won’t say “no” to any offer to keep the post.

Başçı made a 4-hour long closed door presentation to members of the Planning and Budget Commission on Jan. 7. 

Several market players have raised questions about the independence of the Central Bank in 2015 as high-level officials severely criticized its rate policy of a growth hike push amid a rising inflation rate. Such moves triggered rallies in the stock markets and the forex markets over last year.

Upon a question about the independence of the bank by deputies from the opposition parties, Başçı said, “Everyone needs to back us [the Central Bank] as the Central Bank is the dignity of this country.” 

He also said a rate hike may be the case if needed, according to sources. 

“If the decline in volatility witnessed with the start of global monetary policy normalization is lasting, monetary policy simplification steps could start from the next meeting,” he said at the presentation, which was later posted on the bank’s website, as reported by Reuters. 

By global “normalization,” Başçı was referring to the U.S. Federal Reserve’s decision to raise interest rates last month for the first time in nine years.

The next meeting of Turkey’s monetary policy committee is scheduled for Jan. 19.

Başçı’s office term will end on April 19 and it is a big unknown as to who will succeed him.