CBRT Release Summary of January MPC Meeting

Highlights from the summary of the January CBRT meeting:

• Following the expected, temporary monthly increase in inflation in January, which was also reflected in the Inflation Report forecasts, price increases are expected to slow down in February and beyond.
• The Committee assesses that inflation expectations and pricing behavior continued to show signs of improvement.
• As of June, the measures taken to ensure the sound functioning of the banking system within the scope of the simplification process have primarily restored the flow of Turkish lira commercial loans.
• Recently, a temporary liquidity surplus has been observed in the market… the Committee will continue to implement quantitative tightening by extending the sterilization tools at its disposal in order to support the monetary tightening process.
• Turkish Lira Deposit Purchase Auctions continue to be organized. While the policy rate, the main policy instrument, affect monetary and financial conditions and expectations, these decisions aim to stabilize excess Turkish lira liquidity and increase the effectiveness of monetary policy.

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