This week, the Central Bank’s interest rate decision and the consumer confidence index will be at the forefront of the agenda in Turkey. A new reduction in the policy rate is not expected as the Central Bank’s Monetary Policy Committee (PPK) announced at its last meeting that the current interest rate is sufficient and appropriate.
On the other hand, everyone’s eyes will be on the Federal Reserve’s (Fed) interest rate decision. With the possibility of a 0.75 and 1-point increase, capital markets are in favor of 0.75 points. If the result is in this direction, markets may enter a short-term but strong period of optimism. Otherwise, there may be fluctuations both inside and outside the country.
On the foreign policy side, President Recep Tayyip Erdogan will be in the U.S. until September 22 to attend the 77th General Assembly of the United Nations in New York. President Erdogan is expected to make an appeal at the assembly tomorrow, as well as hold bilateral meetings with global leaders. Many topics, such as the Russia-Ukraine war, the grain corridor created under the leadership of Turkey, the conflict with Greece in the Aegean, the supply of F-16s, and ending the support given to terrorist organizations in Syria, will be on Erdogan’s agenda.
Regarding domestic affairs, the parliament process has begun to finalize the omnibus support law, which includes regulations regarding the economy and a support package for low-income people. The package was prepared jointly by the Ministry of Treasury and Finance, the Ministry of Energy and Natural Resources, and the Ministry of Family and Social Services. Work will begin to finalize the bill with help from bureaucrats in the AK Party parliamentary group meeting tomorrow.
The Constitutional Court, on the other hand, will discuss the People’s Democratic Party’s (HDP) demands tomorrow, as part of the HDP’s closure case. The HDP, which gave its defense on the merits of its case in April, submitted additional evidence to the high court in July. The HDP’s demands will be considered at the meeting.
The net international investment position posted a USD 217.3bn deficit in July, according to the Central Bank.
IN OUR MAGAZINE THIS WEEK:
>> On the cover: Erdogan Coban, the new CEO of Solen Group, is on our cover this week. Solen Group, one of the three big chocolate industrialists in Turkey, has gone through a major management shift recently. Elif Coban, who has been chairing the company for 12 years, transferred her role to Coban in July. “We passed the growth target we set for 2021 and completed the year with nearly USD 300m turnover,” said Coban in an exclusive interview with daily DUNYA. You can read the details on pages 8-9.
>> Professor Ilter Turan: The queen has died, long live the king! P. 10.
>> Q&A: Ziya Akkurt, Chairman of the Board of Directors of Nurol Investment Bank. P. 11.
>> Chief Economist Gunduz Findikcioglu: Presidential election odds. Pp. 12-13.
>> Our Foreign Policy Columnist, Zeynep Gurcanli, says President Recep Tayyip Erdogan’s goal is to meet with U.S. President Joe Biden on the sidelines of the 77th General Assembly of the UN in New York. You can read the details on page 14.
>> The Italy-based global cruise line MSC Cruises plans to contribute EUR 55m to the tourism industry in Turkey, according to the officials of the company.
>> The total asset size of companies operating in Turkey amounted to TRY 15.6tr in 2021, according to the Turkish Statistical Institute (TurkStat). The manufacturing industry topped among other sectors with an asset size of TRY 4.86tr last year.