Turkey's central bank said on Thursday monetary tightening will be further strengthened as much as needed in a timely and gradual manner until a significant improvement in the inflation outlook is achieved, as it hiked rates to 15% from 8.5%.
The bank also said it will simplify and improve the existing micro- and macroprudential framework to increase the functionality of market mechanisms and strengthen macro financial stability.
In a statement after its monetary policy committee meeting it said the simplification process will be gradual, guided by impact analyses.
"The Committee decided to begin the monetary tightening process in order to establish the disinflation course as soon as possible, to anchor inflation expectations, and to control the deterioration in pricing behavior," it said after its first meeting under newly appointed Governor Hafize Gaye Erkan.
