ID :
108780
Fri, 02/26/2010 - 21:40
Auther :
Shortlink :
https://oananews.org//node/108780
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TURKISH C.BANK EXPECTING SLIGHT INCREASE IN CORE INFLATION INDICATORS UNTIL MID-YEAR
ANKARA (A.A) - 26.02.2010 - The Turkish Central Bank said it expected slight increase in core inflation indicators until mid-year.
Releasing a report on a recent meeting of its monetary policy committee, the Bank said due to tax adjustments, unprocessed food price increases and base effects, annual inflation would continue to rise markedly in February and hover above the target for some time.
The bank said unprocessed food prices picked up at a slower pace than the seasonal norm in January. Yet, the red meat prices continued to rise, having an indirect impact on processed food and catering prices and leading to higher annual inflation in these subcategories.
Moreover, the rise in vegetable prices driven by heavy rainfall and floods may produce a significant but temporary upsurge in the annual unprocessed food inflation in February.
The bank said said that inflation would display a declining trend once the temporary factors, such as unprocessed food price volatility and tax hikes, tapered off.
The bank projected that based on the assumption that the economy would recover gradually, resource utilization is expected to remain at low levels for some time and continue to support disinflation.
The Bank reemphasized that it would be necessary to keep policy rates at low levels for a long period of time despite easing financial conditions and declining loan rates had been strengthening the expansionary impact of monetary policy.
Releasing a report on a recent meeting of its monetary policy committee, the Bank said due to tax adjustments, unprocessed food price increases and base effects, annual inflation would continue to rise markedly in February and hover above the target for some time.
The bank said unprocessed food prices picked up at a slower pace than the seasonal norm in January. Yet, the red meat prices continued to rise, having an indirect impact on processed food and catering prices and leading to higher annual inflation in these subcategories.
Moreover, the rise in vegetable prices driven by heavy rainfall and floods may produce a significant but temporary upsurge in the annual unprocessed food inflation in February.
The bank said said that inflation would display a declining trend once the temporary factors, such as unprocessed food price volatility and tax hikes, tapered off.
The bank projected that based on the assumption that the economy would recover gradually, resource utilization is expected to remain at low levels for some time and continue to support disinflation.
The Bank reemphasized that it would be necessary to keep policy rates at low levels for a long period of time despite easing financial conditions and declining loan rates had been strengthening the expansionary impact of monetary policy.
