The Turkish currency firmed to 4.66 against the dollar on Monday, May 28 as “investors weighed up comments by Deputy Prime Minister Mehmet Şimşek and Central Bank Governor Murat Çetinkaya after last week’s emergency 300 basis point interest rate hike”, Reuters reports.
Şimşek and Çetinkaya met and talked with investors in Istanbul on May 27 insisting and stressing that the Turkish government is focused on fiscal discipline, strict monetary policy and is committed to the market economy.
Serhat Gürleyen, research direct at İş Investment said “We understand that a move towards simplification and normalization in monetary policy could come onto the agenda in what could be expressed as ‘the days ahead’ (…) We had the impression that the Central Bank envisages keeping monetary policy sufficiently tight for a long time.”
Last week Turkey’s lira hit a record low of 4.9290…. / IBNA