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CBRT Nods to Softer April CPI, Says Tight Policy Has Begun to Impact Price Pressures

TURKEY
  • CBRT: INFLATION EXPECTATIONS CONTINUE TO POSE RISKS TO OUTLOOK
  • CBRT VOWS TO MAINTAIN STANCE UNTIL SIGNIFICANT SLOWDOWN IN CPI
  • CBRT:DECELERATING IMPACT OF TIGHTENING HAS BEGUN TO BE OBSERVED
  • Very similar statement to the prior meeting- pointing to continued demand and supply-side risks to inflation alongside higher expectations- Observation of decelerating impact of tightening "has begun" changed from "envisaged to become more significant in the upcoming period"
  • shift in phrasing to "has begun" from "in the upcoming period" is likely a nod to the CBRT's forecast for a cyclical peak in inflation in April
  • USD/TRY gaining a bit of downside momentum below 8.30 following the continuation of last month's policy trajectory, but as expected a relatively muted reaction thus far
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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