Middle East

Turkey’s Albayrak says central bank independent, sees no crisis in banking sector

ISTANBUL (Reuters) – Turkey’s central bank is independent of government and will take all necessary steps to combat inflation, Finance Minister Berat Albayrak told Reuters, defending an institution that has not raised its benchmark rate in nearly three months despite a currency crisis.

Albayrak also said he did not expect any problems in the banking sector, in stark contrast to recent warnings from ratings agencies that the lira sell-off could weaken lenders’ assets. In the event of a problem at banks, Ankara would be willing to step in with support, he said.

The lira has fallen some 40 percent against the dollar so far this year, hit by concerns about President Tayyip Erdogan’s control over monetary policy and a worsening diplomatic rift with the United States.

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