ISTANBUL, June 1 (Reuters) – The Turkish Central Bank said on Monday that it will determine its monetary policy stance by considering the underlying trend of inflation to sustain the disinflation process.
In the minutes of its latest policy-setting meeting, when it cut the benchmark rate to 8.25%, the central bank said global developments in commodity prices impacted the inflation outlook favorably despite recent lira depreciation.
Consumer inflation might follow a slightly higher course in the short-term but demand-driven disinflationary effects will be more prevalent in H2, the central bank also said.
Leading indicators suggest the rise in annual food inflation will continue in May due to unprocessed food prices, it added. (Reporting by Ali Kucukgocmen Writing by Ezgi Erkoyun Editing by Daren Butler)
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