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CBRT Minutes Highlights:

TURKEY
  • The persisting high course in international commodity prices, increases in domestic energy prices and ongoing disruptions in supply chains continued to drive producer prices up.
  • The May results [..] suggest that inflation expectations have increased for all maturities, being more evident in shorter maturities. The current year-end inflation expectation rose by 11.48 points to 57.92%, while the 12-month-ahead inflation expectation increased by 4.87 points to 33.28%. Currently, the 24-month-ahead and five-year-ahead inflation expectations stand at 19.54% and 9.96%, respectively.
  • Bond and equity markets both registered outflows in May in tandem with the global risk appetite. The impact of such risks through the portfolio flows channel towards Türkiye is judged to prove to be relatively limited.
  • The depth and stability of the foreign exchange market and price stability are being analyzed and necessary policy measures are being taken.

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