Turkey's central bank is independent of government and will take all necessary steps to combat inflation, Finance Minister Berat Albayrak told Reuters, defending an institution that has not raised its benchmark rate in nearly three months despite a currency crisis.
Albayrak also said he did not expect any problems in the banking sector.
In the event of a problem at banks, Ankara would be willing to step in with support, the minister said.
"The central bank in Turkey has been maybe more independent than those in other countries," Albayrak said in an interview at an ornate, 19th century Ottoman palace overlooking the Bosphorus in Istanbul. The bank will take steps "to continue this independence," he said.
Turkey has reached a point where it requires a "full-fledged fight against inflation," Albayrak said.
Relations with the United States, a NATO ally and major trading partner, have soured over a series of issues including Turkey's detention of an American Christian pastor on terrorism charges and the U.S. sentencing of an executive from Turkish state bank Halkbank for busting sanctions on Iran.
Adding to the friction, the U.S. Treasury is investigating Halkbank for violating Iran sanctions. The bank has said all of its transactions were legal.
Turkey hired a U.S. law firm to look into Halkbank's dealings with Iran and found that it did not violate U.S. sanctions, Albayrak said, adding Ankara does not expect the bank to face any fine.
"As a result of a months-long independent examination, it has been established that the bank had not violated primary and secondary U.S. sanctions against Iran," he said.
Referring to Turkey's wider dispute with the United States, Albayrak said Washington had taken it to a point that did not benefit "the U.S. state or people".
"I have no reason to be worried at this stage. But we are aware how important the banking sector is. We are in a close coordination and cooperation with our banks and the (banking watchdog) BDDK," Albayrak said.
"We are not expecting any problems in the banking sector, but in case of a problem, we will support them in every way."
He also dismissed concerns about debt, including in the private sector. He said the current account deficit will be "considerably below" forecasts by year-end and "much stronger" in 2019.
