CB to observe effects of monetary policy shift

The Central Bank will "wait a little" to see the full impact of its new monetary policy mix of lower interest rates and higher reserve requirements, Governor Durmus Yilmaz said yesterday. While rate cuts in the past two months have succeeded in limiting short-term inflows and weakening the lira, it will take time to see how much increased reserve requirements will slow loan growth, Yilmaz told BloombergHT television from Davos, Switzerland. The bank's policy is now an aggregate of interest rates and reserve requirements, he added.