January 28, 2014 / 10:07 AM / 4 years ago

Turkish central bank governor says to use interest rate tool

ANKARA, Jan 28 (Reuters) - Turkish Central Bank Governor Erdem Basci said on Tuesday he expected to start using the interest rate tool in monetary policy.

"We know that tightening moves to halt excessive volatility are way more effective when they are backed by interest rates," he said.

"A steep decline in forex reserves may cause other concerns, thus the interest rate instrument should be implemented in this environment."

The central bank has burned through its dollar reserves in the last week to shore up the lira which has hit a series of record lows against the dollar. (Reporting by Ece Toksabay, writing by Alexandra Hudson, editing by Ayla Jean Yackley)

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