Turkish Central Bank Expecting Slight Increase in Core Inflation Indicators Until Mid-Year

Notes from a recent meeting of the Turkish Central Bank’s Monetary Policy Committee shows that it expects a slight increase in core inflation indicators until mid-year. The Bank said the increases would be due to tax adjustments, unprocessed food price increases and base effects. Annual inflation would continue to rise markedly in February and hover above the Bank’s year-end target for some time, but declining once the temporary factors taper off. The bank reemphasized that it would be necessary to keep policy rates at low levels for a long period of time.

By identifying the cause and effects of what it believes are short-term inflationary pressures, the Bank hopes to avoid increasing interest rates and, thereby, slowing economic recovery. 

Source: Hurriyet Daily News

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