What happened at the meeting in London? Treasury and CBRT issue statement on Reuters' interest rate policy report

The Ministry of Treasury and Finance announced that Minister Mehmet Şimşek, as a matter of principle, does not make assessments regarding interest rate policy during his domestic and international engagements.

DENIAL OF REUTERS REPORT

In a statement issued by the Ministry, a response was provided to the Reuters report regarding the London meetings. The statement included the following remarks:

"Our Minister of Treasury and Finance, Mr. Mehmet Şimşek, as a matter of principle, never comments on interest rate policy in any domestic or foreign meetings. In this context, the assessments regarding monetary policy, which were conveyed as an 'impression' about the London program in the Reuters report signed by Jonathan Spicer and Marc Jones, do not in any way bind our Ministry or our Minister."

CENTRAL BANK ALSO ISSUES STATEMENT

The Central Bank of the Republic of Turkey also stated in its announcement on the matter that its communication policy is conducted in line with the principles of transparency, consistency, and simultaneous information sharing. In this context, it was stated that regular and broad-participation meetings are held with market actors both domestically and internationally.

The statement reported that the claim circulating in the public sphere regarding the technical briefing meetings held in London, which suggested that "information and assessments not previously shared were shared with investors," does not reflect the truth.

“LIMITED TO PUBLICLY AVAILABLE DATA”

It was stated that during the meetings, technical questions regarding the macroeconomic outlook, financial markets, and the banking system were answered in order to ensure an accurate understanding of monetary policy implementations.

The statement included the following expressions:

"All information shared in this context is limited to monetary policy texts that are already publicly available and published macroeconomic data. There is no question of sharing any information or policy assessment that is not open to the public, either domestically or abroad. Please do not rely on comments, impressions, and statements that are outside the official communication channels of the CBRT."

WHAT HAPPENED?

Mehmet Şimşek and CBRT Governor Fatih Karahan had met with investors in London. According to participants, no clear guidance regarding interest rate policy was provided during the meetings.

According to the Reuters report, an unnamed investor said they gained the impression that the CBRT's "base scenario" could be an interest rate hike if there is no significant easing in the conflicts in Iran by April 22. The same participant stated that in the event of a possible escalation, this step could be taken sooner.

Another investor commented, "They did not completely rule out an interest rate hike, but they did not seem in any hurry to take any steps either. They will not allow the Turkish Lira to weaken."

A third participant stated that the officials pointed to existing measures and expressed that the impact of geopolitical developments might remain more limited than expected.

News Source: 12punto