RTTNews - Friday, Turkey's central bank said next rate cut would be measured, as changes in monetary conditions affect economic activity and inflation with a lag.
In its minutes for the June 16 monetary policy committee meeting, the central bank said annual inflation is expected to rise in June due to the base effect and the tax adjustments. However, the bank added that the increase in inflation is seen to be temporary given the one-off nature of the factors affecting June inflation. In May, annual inflation dropped to 5.24% from 6.13% in April.
Moreover, the bank said recent signs of recovery in economic activity should not be discarded, although downside risks persist. Based on this assessment, the bank said, The rate-setting committee will consider a deceleration in the pace of rate cuts or a pause should be the indication of an improvement in economic activity point to a robust recovery.
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