Turkish inflation unexpectedly accelerated in August as a weaker lira pushed up the cost of imported goods.
Just a month ago, Turkish bond yields signaled that the economy was heading for a recession. Now, the nation is growing enough to keep the two-year expansion alive after the central bank slashed interest rates, credit market measures show.
Turkey’s two-year interest-rate swaps fell as a manufacturing gauge moved lower and Istanbul city data suggested inflation may have peaked.
"The deflation environment makes it obvious that Flug has to act."
- Tatha Ghose on Dec 02, 2014