April Inflation: Slows to 3-Year Low
April inflation was another negative surprise and the drop was sharper than expected for the second month in succession. The reading of 0.78% dragged the annual rate down to 6.6%, primarily due to decreasing food prices. With that being said, it is worth to note that the strong base effect was also helped the annual inflation fell this sharply.
Core inflation (the I index) continued to remain high, was stuck at 9.4% by declining only...
Turkey Post-MPC: On The Horns of a Dilemma
Turkish MPC remained on hold once again yesterday as one-week repo rate, or so-called policy rate stood at 7.5%, along with overnight lending and borrowing rates at 10.75% and 7.25%. The central bank for sure will maintain the status quo until the end of Basci’s term in April.
“Tight monetary policy stance will be maintained” part of the guidance was also once again preserved. CBT lifted its average cost of funding recently which has been slightly above...