Economics
Turkish Inflation Pressures Central Bank to Keep Policy Tight
A weak lira and rapid credit growth underpinned by negative real interest rates kept inflation in double digits all of last year.
Photographer: Nicole Tung/BloombergThis article is for subscribers only.
Turkish inflation quickened for a fourth month as the lingering impact of a weak lira led to a broad-based rise in prices.
That means Turkey still faces pressure to keep monetary policy tight, even after the new central bank governor boosted his credibility among investors through rate hikes, policy simplification and hawkish pledges. Consumer prices increased an annual 15% in January, more than the median estimate of 14.7% in a Bloomberg survey of 21 economists.