Turkish Central Bank governor on developments at ISE and foreign exchange rates

ANKARA (A.A) - August 8, 2011 - The governor of the Central Bank of Turkey said on Monday that recent developments seen in foreign exchange rates and the Istanbul Stock Exchange (ISE) was "a response to global sales wave".
In an exclusive interview with the Bloomberg HT channel, Basci said, "we wish to intensify primary measures regarding current account deficit on consumption. Rate of increase in in consumer loans drops to moderate levels rapidly. Positive impacts of this on current account deficit will be seen starting as of July."
Basci said not only Turkish Central Bank but the European Central Bank took action following the sudden developments in Spain and Italy.
Responding to a question on current account deficit, Basci said 9 percent current account deficit in Turkey is high, "there is a consensus among policymakers that this should be dropped to moderate levels. "There will be an upturn. Steps taken so far indicate this. I think we succeed."
When stated that expectations of IMF was higher, Basci said current account deficit would drop in case developments in global economy have an impact on the growth in Turkey.
Basci said Central Bank did not have any agenda topic like looking for different economic models.
Central Bank governor said the bank has carried out necessary works against scenarios of global fluctuation and liquidity excess. 
"The banks may expand loans in case of liquidity excess. If this happens, we should take preventive measures," he said.