Financial Times FT.com

Markets fear rift between bank and Erdogan

By Vincent Boland in Ankara

Published: May 14 2008 04:02 | Last updated: May 14 2008 04:02

Signs of a rift between the government and the central bank in Turkey emerged on Tuesday, raising concerns about the coherence of economic policy ahead of an expected sharp rise in interest rates this week.

Recep Tayyip Erdogan, the prime minister, was forced to deny market and media speculation about deteriorating relations between the government and the bank. His comments came after reports that Durmus Yilmaz, the central bank governor, was kept waiting for five hours on Monday before being allowed to brief the cabinet on monetary policy.

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