July 05, 2022 07:58 GMT
- In their assessment of this month’s inflation release, the CBRT see an increase in rent and energy as behind the most recent rise in prices, and also noted that unprocessed food prices declined, although processed food prices continue to increase.
- Despite gaining a number of concessions in negotiations surrounding Finland and Sweden’s accession to NATO, the Turkish foreign minister again stated that Turkey could veto membership for the two countries, stating that they will not ratify membership if they don’t fufill their promises to combat terrorism and extradite suspects.
- On yesterday’s inflation release, JPM write that the CBRT remains in no rush to normalize policy, with lira stability – at least partly been secured by the lira deposit scheme - will be the main tool to restrain inflationary pressures in the short run. Meanwhile, Goldman Sachs commented that they expect inflation to peak at +90%yoy in the October-November period and only fall to 75%yoy at year-end with the help of base effects. They also see devaluation of the TRY and the high current account deficit adding to the risks substantially.
- Today’s Dunya writes that a key financing tap for exporters has been closed off for almost two months, with exporting firms not able to access financing facilitated by the CBRT lending to the real sector. Instead, the piece writes that firms are forced to opt for more expensive instruments, particularly if they can’t access re-discount credits.
- Turkish President Erdogan meets with his Italian counterpart Mario Draghi today to discuss Turkish-Italian ties – the two leaders hold a press conference at 6.30pm local time (1630BST/1130ET).