ISTANBUL, March 23 (Reuters) - 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