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TURKEY: Simsek Says Slowing Inflation Can Eventually Achieve TRY Stability

TURKEY
  • Speaking in an interview to BloombergHT, Treasury and Finance Minister Simsek said slowing inflation will eventually help achieve stability in “nominal” exchange rates in the Turkish lira. He added that stability in the lira is an objective that can be achieved in the medium to long-term.
  • On inflation, Simsek said it’s important for year-end inflation to be below 42%, the upper end of the central bank’s forecast trajectory for 2024. He added that it would be “ideal” for annual price gains to slow to 38%, the monetary authority’s target for the end of the year.
  • Turkey’s manufacturing PMI fell to 47.9 in June from 48.4 in May – the lowest reading since December 2023. New Orders fell to 45.5 from 47.0, marking the 12th consecutive month of contraction.
  • CPI data for June is the key release of the week on Wednesday. Headline inflation is seen moderating from +75.45% y/y in May to +72.55% in June while core inflation is expected to rise +73.17% y/y (Prior: +74.98%).

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