Recent indicators in Turkiye point to an increase in the underlying trend of inflation, and strong domestic demand, cost pressures and the stickiness of services inflation have been the main drivers, the bank noted in a release.
The committee anticipates that the deterioration in pricing behaviour will put further pressure on inflation.
The medium-term inflation target is 5 per cent. Monetary tightening will be further strengthened as much as needed in a timely and gradual manner until a significant improvement in the inflation outlook is achieved, the bank said.
To raise the functionality of market mechanisms and strengthen macro financial stability, the committee will simplify and improve the existing micro- and macro-prudential framework.
ALCHEMPro News Desk (DS)
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