“No surprises” – “as expected” – was the chorus from economists as Turkey’s central bank released its latest inflation report on Tuesday, lowering its forecast for year-end inflation, and signalling that it expected to delay rate rises to the second half of 2010.

Dull predictability is a virtue in central bankers: in previous decades, when Turkey ricocheted between economic crises, a year of stable, single-digit interest rates is something Durmuş Yılmaz’s predecessors as bank governor could only dream of.

Even so, some inflation-watchers are worried at the monetary policy committee’s consistent dovishness. Continue reading »