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Turkey's Babacan says c.bank policy messages should come from bank itself

Turkish Deputy Prime Minister Ali Babacan said messages regarding central bank monetary policy should come only from the bank itself

Published: Updated:

Turkish Deputy Prime Minister Ali Babacan said on Friday that messages regarding central bank monetary policy should come only from the bank itself, in an apparent attempt to quell concerns about government interference in policy.

Markets have been unnerved by President Tayyip Erdogan's frequent attacks on the central bank, including comments that interest rates cause inflation and that those who defend high rates are guilty of treason.

The fulminations have sparked worries about central bank independence, helping send the lira currency to a series of record lows this year.

Babacan, long seen as an anchor of investor confidence, told an economic summit in the western city of Bursa that the central bank alone should be responsible for communicating its policy messages.

However, he also said the predictability of monetary policy needs to improve.

Erdogan said on Thursday his talks this week with Central Bank Governor Erdem Basci had ended positively and with a consensus, comments which also appeared designed to ease tensions over monetary policy.