Babacan: "Real interest rates are at a historic low"

The Treasury's borrowing interest rates have hit a historic low of 6.8%, with inflation at 6.4%, said Deputy Prime Minister for the Economy Ali Babacan yesterday. Babacan, speaking to the Independent Industrialists and Businessmen's Association's (MUSIAD), added that falling interest rates are important for economic confidence. Turkey's stock risk premium is lower than 12 European Union countries, including Italy, Belgium and Spain, he pointed out, saying that such developments are promising for the year ahead. "We must be all cautious in 2011," he added. "We can't say that everything is all right before the bigger economies reveal their strategies." Babacan said that it's too early to declare the global economic crisis over.