Turkey’s Tight Monetary Policy Mandate Maintained

Weekly Report - 28/08/2016

Fundamentals to Guide Policy for Turkish Banks

The Turkish central bank opted to cut another 25 basis points from its lending rate, bringing it down to 8.50% and marking the country’s 6th consecutive rate cut in recent memory. Policymakers stated that tight monetary policy will be maintained, with forward moving plans contingent upon inflation and other fundamentals.

The Last Week

Last week, oil prices climbed to early June values on the heels of an oil producer meeting occurring in September. Russia and Saudi Arabia alongside other OPEC constituents have agreed to meet in Algeria for the discussion of a potential production freeze. The price of oil is reacting in a mixed manner, slightly reversing though it was noted that all major producers have raised their production since April’s Doha meeting, including the US and Europe.


The Upcoming Week

Coming up on Friday the 2nd of September, economists expect the US dollar to experience volatility as nonfarm payrolls are announced. The past couple of results have shocked the markets and the metric is currently the flavor of the month regarding the prediction of rate hike trajectory, though recent indications point to a slowdown in employment. Fresh economic data alongside the Feds FOMC meeting minutes however, point out the fact that the US labor market is at full or nearly full employment levels.


This website uses cookies to ensure best possible user experience. Read more