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scepticism that Turkey’s central bank retains its monetary independence. President Recep Tayyip Erdogan lately fired the national lender’s governor for not following instructions on interest rates. The big rate cut was announced by his successor Murat Uysal after Erdogan had predicted that the remainder of this year would see monetary easing in Turkey. Announcing, the central bank’s changed inflation projections, Uysal, who has insisted the regulator retains monetary independence, said policy would depend on the inflation outlook. "In the upcoming period we have a considerable room for manoeuvre on rates. Its application, timing and size will depend on the improvements on price and financial stability," Uysal told reporters. "We will make [the decision] based on data." The prospect of a spreading monetary easing trend among major central banks including the US Fed is proving a big help in simultaneously bringing in rate cuts while not destabilising the Turkish lira after its meltdown last year. In the past six days, the lira has clocked up a straight run of gains against the dollar.
8.3 Stock market
8.3.1 Equity market dynamics
49 TURKEY Country Report August 2019 www.intellinews.com