July 12, 2018 / 7:41 AM / 2 months ago

Turkey CDS rise to a near 1-mth high after Erdogan interest rate comments

LONDON, July 12 (Reuters) - The cost of insuring exposure to Turkish debt rose on Thursday to a near one-month high after President Tayyip Erdogan’s comments on interest rates rattled investors concerned about Turkey’s double-digit inflation.

Five-year credit default swaps rose 7 basis points (bps) from Wednesday’s close to 337 bps, according to IHS Markit data, the highest since June 19.

Erdogan told a newspaper that interest rates would fall “in the period ahead”, adding to fears about the direction of monetary policy in a country with an overheating economy. The central bank is due to meet on July 24.

Reporting by Claire Milhench Editing by Gareth Jones

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