What matters on Thursday, August 18

Today, the Central Bank’s Monetary Policy Committee (PPK) will meet to set the policy rate. Analysts expect the interest rate to be kept unchanged at 14% considering the latest political statements and previous PPK statements. Moreover, they expect the policy rate to be left at 14% until the end of this year. The PPK is also estimated to emphasize inflation, commodity prices, and the liraization policy in its statement, as it has before.

Turkey’s benchmark stock index rallied to an all-time high of 2,980.0 points at yesterday’s close, up 2.29% on a daily basis. After starting the day at 2,928.71 points, Borsa Istanbul’s BIST 100 index gained 66.7 points from Tuesday’s close of 2,913.30 points. Borsa Istanbul positively differentiated from the global stock exchanges thanks to the dense purchase of banking equities. The sector and equity-based differentiations continue on Borsa Istanbul due to financial statements released by the companies. Analysts said 2,940 points and 2,900 points will be the support level and 3,000 points will be the resistance level for the BIST 100 index, in technical terms.

The peak of inflation will hit 87% in the country, according to an analysis prepared by the France-based multinational investment bank and financial services company Societe Generale. While the bank doesn’t expect a change in the Central Bank’s policy rate and communication, it estimates the USD/TRY to reach 22.00 at the end of 2022. Societe Generale also expects the Central Bank to continue to focus on other measures to restrict credit growth, take steps to dissuade from foreign exchange position, and support TRY.

President Recep Tayyip Erdogan discussed bilateral relations and regional issues with the prime minister of Israel in a phone call. Erdogan told Yair Lapid that Ankara would take the necessary steps to appoint a new ambassador to Israel as soon as possible. This came hours after Turkish Foreign Minister Mevlut Cavusoglu announced that the two countries would mutually reappoint envoys. In the phone call, President Erdogan said he supports the development of cooperation and dialogue between Turkey and Israel, built on a sustainable basis and respect for mutual sensitivities.

Four more ships have left Ukrainian ports under the Istanbul grain export deal, the National Defense Ministry said yesterday. Ships carrying sunflower meal, sunflower oil, and corn departed from the Ukrainian ports of Odesa and Chornomorsk, the ministry said on Twitter. Since the first departure on August 1, 25 ships have left Ukrainian ports under the deal.


The net international investment position posted a USD 222.4bn deficit in June, according to the Central Bank.

The Central Bank will announce the interest rate decision (2.00 p.m.).


>> The consolidated revenue of Koc Holding totaled TRY 385.9bn in the first half of the year. The holding company made a combined investment of TRY 14.9bn in the same period.

>> The net profit of Index Group’s subsidiary Indeks Bilgisayar jumped 175% to TRY 239.5m in the first half of the year.


>> Domestic borrowing triples

The June Treasury cash balance data, which is considered the preliminary indicator of the central government budget, was released. The results contain important points that should be taken into account in the upcoming period, according to our ‘Critical Angle’ columnist Ismet Ozkul.

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