Turkey C.Bank-not considering forex controls

ISTANBUL, Nov 12 (Reuters) - Turkey is not considering foreign-exchange controls, central bank governor Durmus Yilmaz said on Friday, adding he did not think strong loan growth in the economy showed it was overheating. The central bank on Thursday held its policy repo rate at 7.0 percent but slashed the overnight borrowing rate by 400 basis points to 1.75 percent to spur interbank lending and longer lira maturities, likely to deter foreign investors from short-term bets on lira appreciation. The overnight borrowing rate could fall as low as zero, Yilmaz said, but the bank was not currently considering this. (Reporting by Nevzat Devranoglu) Keywords: TURKEY CBANK/YILMAZ (alexandra.hudson@reuters.com; +90 212 350 7063; Reuters Messaging: alexandra.hudson.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved.

The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.