Turkish economy minister says rate hike temporary

Turkey's economy minister says Central Bank rate hike decision 'temporary in nature'.

Turkish economy minister says rate hike temporary
World Bulletin / News Desk
Turkey's economy minister says a rate hike decision by Turkey's Central Bank of Turkey is purely temporary.

Speaking at a Turkish Exporters' Assembly meeting in the southeast city Gaziantep, Nihat Zeybekci said that the "rate hike decision is temporary in nature and not a permanent interest rate decision.” 

The central bank introduced a significant rise in its interest rates late Thursday to prevent the lira from falling further against the dollar.

Overnight interest rates were raised, with the borrowing rate rising to 8 percent from 3.5 percent, and the lending rate to 12 percent from 7.75 percent.

During the meeting in the southeast city of Gaziantep, Turkey announced that its exports increased 9.6 percent in January compared to the same month last year, hitting $12.015 billion.

Turkey's exports in 2013 were down 0.4 percent year-on-year, reaching $151.86 billion, while imports were up 6.4 percent year-on-year to $251.6 billion.

To grow its exports, Zeybekci said, Turkey has been studying growth by the United States, the world's largest economy. 

"The US achieved this because it put emphasis on the use of raw materials, on the forward planning of energy resources, on managing consumer habits for consumption, and determining consumption channels," he said.

He said Turkey would also be influential in these areas.

The minister added that there would be a framework for negotiations towards free trade agreements (FTA) with Japan before April, and those negotiations would start by June 1.

“Turkey will (also) swiftly sign free trade agreements with Singapore and Malaysia," he said.

Zeybekci also announced disillusionment with Turkey's 1995 Customs Union agreement with the European Union, which covers industrial goods but does not address agriculture services or public procurement.

Bilateral trade concessions apply to agricultural products, according to the European Commission website,.

“We are not happy with the 1995 agreement. We have already started to make improvements on it,” he said.

The EU is Turkey's number one import and export partner, while Turkey ranks as the EU's seventh top importer and fifth highest export market.

Turkey has been a candidate country to join the European Union since 1999, and is a member of the Euro-Mediterranean partnership.

Last Mod: 02 Şubat 2014, 10:19
Add Comment