MNI BRIEF: Fed's Collins Urges Patience On Judging Inflation

CORRECTED: MNI BOE WATCH: On Hold And Splits Set To Continue

MNI China Daily Summary: Tuesday, June 18

MNI: PBOC Net Injects CNY84 Bln Via OMO Tues; Rates Unchanged

CHINA PBOC CONDUCTS CNY86 BILLION VIA 7-DAY REVERSE REPOS TUES

Notable Moderation In PCCI In May, But Services Persistence Still Noted

Commodity Price Action Supports Krone

EZ/UK Bond Supply Calendar: Cyprus Synd; Greece, Germany Wednesday

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

MNI BRIEF: Poilievre Calls QE 'Scam' And Would Limit BOC Remit

MNI: Growth Drag From Net Zero Carbon Goal Can Be Offset-OECD

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MNI CBRT POV: Another Step Toward Credibility

TURKEY
  • The CBRT delivered a 500bp increase to the one-week repo rate. Among sell-side, consensus was firm for another large-scale increase following the above-estimate 750bp hike in August. 16 of the 21 analysts surveyed by Bloomberg predicted a hike of 500bps or more.
  • In its policy statement, the central bank said that monetary tightening will continue to be gradually strengthened to the extent necessary until a significant improvement in the inflation outlook is achieved. They cited both the stickiness of services inflation and rising oil prices as upside risks to inflation – and therefore see inflation close to the upper end of their forecast by year-end.
  • While President Erdogan recently said that he supports the central bank’s recent tightening steps, he also said that he would not "make concession on economic growth". Such views are conflicting, and it remains to be seen whether or not the President’s stance will shift when growth slows – an issue which will gain more focus as we approach the local elections in March 2024. Credibility in the central bank – which is also a pre-requisite for a recovery in the lira – will therefore more firmly be restored when it is proven that Erdogan accepts tight policy in a low-growth environment.
  • Our full review of the decision, with a summary of sell-side analyst views, will be released tomorrow.
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