Turkish cenbank governor: real interest rates, not nominal, should define monetary policy

ANKARA: Turkey's new Central Bank governor said the bank's monetary policy would take into account real interest rates instead of nominal rates, in his first remarks since taking office nine days ago, state-owned Anadolu Agency reported on Monday.

Murat Uysal, who was appointed governor after President Tayyip Erdogan ousted his predecessor, said the bank had "room for manoeuvre" in its monetary policy as he expected disinflation to continue in 2019 on the back of declining cost pressure and weaker domestic demand.

Economists expect the bank to cut its benchmark rate by 200 basis points from 24% at its next rate-setting meeting on July 25, after inflation fell in June to a year-low of 15.72%.