The Central Bank’s Monetary Policy Committee (PPK) kept its policy rate steady at 14% as expected. No notable message was included in the PPK statement, and no message was sent about the future of the interest rate policy, according to the economic world. As a change, the bank pointed out in the PPK statement that credit growth and allocation of funds for real economic activity purposes are being closely monitored.
The interest rate remained unchanged for a sixth straight month although USD/TRY has increased by nearly 30%, and inflation, which reached 73.5% annually, is 35.64% since the beginning of the year.
Turkey’s benchmark stock index, Borsa Istanbul, closed at 2,543.21 points yesterday, with a daily loss of 1.21%. Starting the day at 2,576.07 points, the index shed 31.09 points from Wednesday’s close of 2,574.30. The total market value was more than TRY 2tr by market close, with a daily trading volume of around TRY 32bn. Analysts said 2,530 and 2,555 points will be the support level and 2,600 points will be the resistance level for the BIST 100 index, in technical terms.
There is a consensus on the establishment of headquarters in Istanbul for the planned “grain corridor” to be established to transport the grain-loaded vessels from Ukraine’s Black Sea ports, according to National Defense Minister Hulusi Akar. In line with the diplomatic efforts initiated by Turkey, serious progress has been achieved in forming the corridor, Akar said, adding that talks are ongoing with the Ukrainian and Russian defense ministers, as well as with the UN.
The Banking Regulation and Supervision Agency (BDDK) has announced a new decision to prevent TRY, which is provided at a low-interest rate in Turkey, from being sold abroad at a high-interest rate. The decision is evaluated as a swap break for non-financial companies. A 500% weighted risk will be implemented for loans that will be used by non-financial residents that carry out derivative transactions with non-residents, according to the BDDK decision.
The BDDK has also changed the rate of value for housing loans in terms of amount. No loans will be given for houses that cost TRY 10m and above, while TRY 2.5m loans can be used for homes valued at TRY 5-10m, according to the new decision.
DAILY AGENDA
The seasonally adjusted confidence index dropped by 1.7% in the services sector and 2.3% in the retail trade sector while it surged by 1.7% in the construction industry in June, compared to the previous month, according to the Turkish Statistical Institute.
The capacity utilization rate dropped by 0.4 points to 77.6% in June, compared to the previous month, according to the Central Bank.
The real sector confidence index dropped by 3.0 points to 106.4 points in June, compared to the previous month, according to the Central Bank.
The Central Bank Governor Sahap Kavcioglu will convene with exporters (3.00 p.m.).
Meanwhile…
>> The Central Bank’s international net reserves dropped by USD 771m to USD 7.38bn in the week ending on June 17 compared to the previous week, hitting a 20-year low. The bank’s total reserves decreased by USD 1.48bn to USD 101.02bn in the same period.
>> Foreign investors’ net equity and government debt securities outflows from Turkey totaled USD 193m and USD 145m, respectively, and their net corporate bond acquisitions amounted to USD 3.5m, in the week ending on June 17, according to the Central Bank.
>> Residents’ FX deposit accounts fell by USD 626.9m from USD 213.31bn to USD 212.68bn in the week ending on June 17, compared to the previous week, according to the Central Bank.
>> The total amount in FX-protected TRY deposit accounts rose from TRY 962.9bn to TRY 992bn in the week ending on June 17, compared to the previous week, according to the BDDK.
>> The Capital Markets Board of Turkey (SPK) has approved the initial public offering of Rubenis Tekstil Sanayi Ticaret AS and Kiler Holding AS.
