Turkish central bank says it will act to contain inflation

ANKARA, Turkey – Turkey’s central bank said it would re-adjust its monetary policy at its next meeting, after Turkey’s annual inflation rate increased to nearly 18 per cent in August.

Turkey’s statistics agency said Monday that the consumer price index was up 17.9 per cent in August compared with the previous year. That’s up from a rate of 16 per cent in July.

The central bank, which independent experts say should increase interest rates, is under pressure from President Recep Tayyip Erdogan to keep them low. It said Monday it would use any means to keep prices stable.

The bank meets Sept. 13 to set rates.

The lira has depreciated by some 40 per cent against the dollar since the start of the year over concerns about Erdogan’s economic policies and a spat with the United States.