"Turkish Central Bank Expects Higher Annual Inflation, Monetary Tightening
By Ali Berat Meric and Steve Bryant - Jan 25, 2011 2:54 PM GMT+0200
The central bank raised its forecast for consumer price inflation to 5.9 percent from 5.4 percent, governor Durmus Yilmaz said at a news conference in Ankara today. The 5.1 percent forecast for 2012 was left unchanged, he said. Inflation slowed to 6.4 percent last month, the lowest for a year.
The central bank says it’s tightening monetary policy on aggregate by increasing reserve requirements on banks to restrain lending. That offsets interest rate cuts in the past two months that have taken the benchmark to a record low of 6.25 percent, helping deter capital inflows and weaken the lira."
More:Turkish Central Bank Expects Higher Annual Inflation, Monetary Tightening - Bloomberg