Turkey’s Financial Stability Committee discussed the impact of global inflation and rising commodity prices on macroeconomic indicators, and the effect of tightening financial conditions on developing countries, it said in a statement.

The committee’s meeting on Monday came against the background of surging inflation and fears of global recession, and amid the depreciation in the Turkish lira, which slipped to its weakest level against the U.S. dollar since last December.

The committee, chaired by Treasury and Finance Minister Nureddin Nebati, also discussed the latest developments in the insurance and banking sectors, the statement said, adding the Turkish banking sector’s core indicators remained strong.

“It is seen that the insurance sector and capital markets’ contributions to the economy continue,” it said, adding that the impact of macroprudential policy steps on credit markets was analyzed as well.

“The committee will continue to ensure the cooperation and collaboration between members in taking the necessary steps within the framework of the pre-determined policy,” it said.

Turkish inflation neared 80% last month, a 24-year high, propelled by a spike in global commodity and energy prices, following Russia’s invasion of Ukraine.

President Recep Tayyip Erdoğan has said the inflation burden on households will ease around the end of the first quarter of 2023.

The lira weakened to 17.85 against the dollar on Monday, nearing an all-time low of 18.4 it hit in December.

Turkey’s central bank is expected to keep its policy rate steady for at least another year, focusing on macroprudential measures on loans and liquidity.

The central bank held its policy rate unchanged at 14% for a seventh straight month last week, as it reiterated its expectation that the disinflation trend was expected to begin.

The key policy rate has been steady since January when the Central Bank of the Republic of Turkey (CBRT) paused an easing cycle after its cuts totaling 500 basis points since September last year.

The government has been affirming its commitment to boosting production, exports and employment with a low-rates policy, and has promised a current account surplus that is said to eventually steady the lira and cool inflation.

Under the current economic program, the government wants the private sector to make investments by taking advantage of low rates to increase production, exports and employment.