Turkish central bank Governor Sahap Kavcioglu told in a local investors meeting, he expects core inflation indicators to fall in the short-term, Reuters reports, citing three sources on a briefing call with the bank.

Kavcioglu added that “the bank will continue to determine monetary policy at a level of tightness that will ensure a fall in inflation as soon as possible,” per sources.

Last month, the central bank slashed the key interest rate to 18% while headline inflation, the bank’s official target, rose to 19.58% in September.

Market reaction

USD/TRY rebounds from daily lows of 8.8492, although remains little impressed by these headlines.

At the press time, the pair adds 0.10% on the day, trading at 8.8783.