ISTANBUL, March 23 Turkey's central bank expects
economic activity to pick up gradually this year but said data
for the first quarter suggests the recovery is not yet
widespread, according to the minutes of its last policy meeting
published on Thursday.
The bank said monetary policy would remain tight until the
inflation outlook shows significant improvement. It said the
gradual elimination of the effect of 2016 tax increases may help
to bring down inflation.
The central bank took another unorthodox tightening step
last Thursday, hiking the cost of funds from its "late liquidity
window" by 75 basis points while leaving conventional policy
rates on hold.
(Writing by Nick Tattersall)