IHA0068BE5-EKO/22-TEM-007C-1C6C


- Turkish Central Banker Stresses Need For Fiscal Disciplne

ISTANBUL (IHA) - Turkish central bank Governor Durmus Yilmaz Thursday stressed that fiscal discipline is necessary to keep interest rates in the country in single-digit figures.

Speaking at a press conference Yilmaz also said Turkey's fiscal rule law will increase confidence in the future.

The law, due to take effect in 2011 if approved by parliament, aims to establish new rules for fiscal policy, setting benchmarks and targets for budget deficits and public debt.

Last week, The Turkish Central Bank left its key overnight borrowing rate at 6.5% and its overnight lending rate at 9%, in line with general market expectations. The bank also left the interest rate at 7% for its daily one-week repurchase agreement auctions.

The bank also previously said interest rates may require to be held at current levels for a while and may be kept at low levels for a long time.
(YC-YC-E-ENG)


22.07.2010 12:43:21 TSI
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