Turkey's finance minister reiterates that central bank would not hesitate to take necessary steps
Comments by Turkish finance minister Albayrak
- Monetary policy will continue to be shaped within target of price stability
- Central bank has likely been more independent than those of other countries
- Will continue on with this independence
- Needs full-fledged fight against inflation at this point
- Turkey doesn't plan to seek IMF support
In other words, expect the Turkish central bank to raise rates on 13 September. But as the central bank has already indirectly raised borrowing costs to 19.25%, a hike between that (150 bps above current) and the late liquidity window rate (300 bps above current) will not be enough to lift the lira in the long-term in my view.