Turkey’s central bank said on Thursday it expected a disinflation process to start on the back of measures taken for sustainable price and financial stability, and so it halted an easing cycle after inflation soared to 36 per cent in December.
The bank’s monetary policy committee said it was conducting a comprehensive review of its policy framework with the aim of prioritising the Turkish lira in all the bank’s policy tools.
After cutting its policy rate by 500 basis points since September to 14 per cent, the bank signalled last month that it would pause the easing cycle in January to monitor the impact of recent easing during the first quarter of 2022.