BREAKING:  TL soars on promises by Central Bank Governor

Dollar/TL currently trading at 8.13, having gained %1.42 for the day.


Business Recorder reports that Turkey’s newly-installed central bank governor, Sahap Kavcioglu, said on Thursday in his first call with investors that tight monetary policy would remain in place due to currently high inflation, according to three people on the call.


Two sources said that a senior bank official added on the call there would be no premature interest rate cuts, and that inflation was close to the upper bound of its forecasts.


President Tayyip Erdogan fired former governor Naci Agbal on March 20 in a shock move that sent the lira down 13% as investors predicted a quick pivot to loose policy, given Kavcioglu’s past criticism of Agbal’s tight stance.


Bloomberg’s version of the virtual conference is as follows


(Bloomberg) — Turkish Central Bank Governor Sahap

Kavcioglu said that the bank would consider continuity while

evaluating monetary policy in coming term during a presentation

to investors, according to person with direct knowledge of it.

* Kavcioglu emphasized necessity of tight policies, pledged to

commit to 5% inflation target

* Inflation-focused monetary policy will be the strongest weapon

against market fluctuations, Kavcioglu said



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Published By: Atilla Yeşilada

GlobalSource Partners’ Turkey Country Analyst Atilla Yesilada is the country’s leading political analyst and commentator. He is known throughout the finance and political science world for his thorough and outspoken coverage of Turkey’s political and financial developments. In addition to his extensive writing schedule, he is often called upon to provide his political expertise on major radio and television channels. Based in Istanbul, Atilla is co-founder of the information platform Istanbul Analytics and is one of GlobalSource’s local partners in Turkey. In addition to his consulting work and speaking engagements throughout the US, Europe and the Middle East, he writes regular columns for Turkey’s leading financial websites VATAN and and has contributed to the financial daily Referans and the liberal daily Radikal.