Turkish central bank signals tightening as January inflation higher

ANKARA Tue Jan 28, 2014 4:26am EST

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ANKARA Jan 28 (Reuters) - Turkish Central Bank Governor Erdem Basci said on Tuesday the bank had signaled tightening at its last monetary policy committee (MPC) meeting as inflation in January may be higher than expected.

At that meeting on Jan. 21, the bank left its key rates unchanged but announced what effectively amounted to a rate increase by the back door, saying it would fund the interbank market at 9 percent on "additional tightening" days.

Since then, a plunging lira has forced the bank to call an interim MPC meeting later on Tuesday at which it could raise interest rates. (Reporting by Seda Sezer and Daren Butler; Writing by Alexandra Hudson; Editing by Ayla Jean Yackley)

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