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CBRT Minutes Subtly Hint at CPI Peak In April, But Vow Policy Continuity

TURKEY
  • CBRT minutes reiterate key concepts from last week's meeting - subtly hinting at a peak in CPI due to the impact of policy tightening on consumer demand and credit
  • Decelerating impact of the monetary tightening on credit and domestic demand "has begun to be observed"
  • "In addition to commercial loans, consumer loans exhibit a milder course."
  • demand and cost-side inflationary effects persisted while a slight deceleration was observed in aggregate demand.
  • Taking into account the high levels of inflation and inflation expectations, the current monetary policy stance will be maintained until the significant fall in the April Inflation Report's forecast path (12.2%) is achieved
  • supply problems in certain sectors, the automotive sector in particular, might constitute downside risk factors for the current account balance
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com

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