Turkish C.Bank backs communication with real sector

ANKARA

Communication with reaI sector firms and information gathered from the field are among the most valuable inputs for decision-making processes, according to Turkey's Central Bank Governor on Wednesday.

Speaking at the Ankara Chamber of Industry, Murat Uysal said they made an in-depth analysis of the problems faced by real sector firms, such as access to credit, foreign currency indebtedness, and the use of imported inputs.

In times of uncertainty, information provided by firms is even more critical than official statistics in determining the bank's monetary policy, he said.

"The CBRT is in the field and communicates directly with real sector companies," said the bank head.

Since 2013, face-to-face interviews have been conducted at regular intervals with approximately 2,000 companies at different size and from different sectors throughout the country, he added.

"In Ankara, more than 500 interviews were conducted with 250 companies in total," he said, adding that these interviews focus on issues ranging from firms' investment positions, and financial circumstances to their pricing behaviors.

Every month a group of 50 specialists conduct these interviews throughout Turkey, he stressed.

He also provided some information on the fundamentals of Turkish economy, saying that recovery in economic activity continues in the third quarter of this year.

"We expect that the risk premium and financial volatility will decrease with the fall in inflation in the upcoming period," he said.

He added that with the contribution of tourism revenues, recovery in current account balance would continue.

"As the Central Bank, we see that the decisions we have taken affect the credit market," he said, stressing that with the interest rate cuts in July and September, deposit and credit rates dropped.

In addition, he pointed that credit growth accelerated, with a more pronounced rise in consumer loans, and a moderate recovery in loan growth rates.