Turkey to begin inflation targeting

Turkey plans to adopt formal inflation targeting in 2006, according to central bank governor Sureyya Serdengecti.

The move will come in January with a range of two percentage points for inflation on either side of its formal target of 5 per cent for 2006.

Sureyya Serdengecti, central bank governor, told a press conference on Monday 5 December that he would hand over responsibility for setting interest rates to a monetary policy committee.

Mr Serdengecti said the bank's success in defeating infla