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