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CBRT Send Latest Warning Shot to Industry in Effort to Smooth Transmission Mechanism

TURKEY
  • In the latest in a series of directives sent to the banking industry, the CBRT have warned domestic banks against reducing the effectiveness of CBRT regulation by raising commercial and retail deposit rates to lure in customers. The CBRT have stated that these practices are against “the spirit” of regulations and fail to support domestic financial stability.
  • Manufacturing PMI contracted for the eighth consecutive month in October, dipping half a point to 46.4 - the lowest since May 2020. Slowing new orders and reduced output reflected weakening growth prospects as the country grapples with surging inflation and low demand appetite from key European trading partners. Purchasing was scaled back as orders declined and staffing levels eased at the fastest since the pandemic onset. Unemployment remained at close to decade lows for now.
  • Defense minister Akar this morning urged that the grain corridor through the Black Sea should be separated entirely from the Ukraine conflict. Akar repeated that Turkey will continue to do its part for peace and humanitarian aid in the region.
  • Finance Minister Nebati is set to speak to TRT news at 2pm local time (1100GMT). Erdogan is also due to appear after markets close.

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