Turkish Central Bank maintains 5% mid-term inflation target

In its strategy document for 2023, the Turkish Central Bank maintained is medium-term inflation target of 5% set jointly with the government.

The bank reiterated the use of all available instruments to achieve and maintain price stability, according to the Main Framework of Monetary Policy and Liraization Strategy for 2023 released on Friday.

The weight of the lira in both assets and liabilities of the banking system will continue to be raised permanently, it said.

"The liraization target in deposits is set at 60% for the first half of 2023," it said.

The bank underlined continuation of the floating exchange rate regime, with exchange rates determined under free market conditions according to supply and demand.

The bank "has no commitment to any exchange rate level and will not conduct FX buying or selling transactions to determine the level or direction of the exchange rates," said the statement.