The market will focus on the Central Bank’s Monetary Policy Committee (PPK) meeting today. Analysts predict the interest rate will remain steady at 14%. However, some economists think that a 100-basis point cut wouldn’t be a surprise due to a possible swap deal by the Central Bank.
Saudi Crown Prince Mohammed bin Salman visited Turkey for the first time in years for talks with President Tayyip Erdogan yesterday, according to Reuters. The leaders, who had one-on-one and inter-delegation meetings, emphasized a new period of cooperation in bilateral relations. In a joint statement following the talks, the two countries said they discussed improving relations and investment in sectors from energy to defense among others.
In the meantime, Treasury and Finance Minister Nureddin Nebati convened with the Commerce Minister and Acting Media Minister Majid bin Abdullah Al Qasabi and Investment Minister Khalid Bin Abdulaziz Al-Falih from the Saudi delegation. Nureddin Nebati tweeted that the parties held constructive talks about the facilitation of bilateral trade relations, sustainable development, and evaluation of investment opportunities and that they came to terms to increase communication for concrete partnerships.
AK Party Vice Chairman and Istanbul Deputy Numan Kurtulmus signaled an increase in wages. Speaking to the broadcaster Haberturk TV, Kurtulmus said wages for retirees would be raised by nearly 40%, noting that there are different options for the increase minimum wage.
The Turkish Statistical Institute (TurkStat), which has stopped releasing item baskets for inflation, announced it will shift to a classification that will further extend the current consumption groups instead of releasing prices of goods based on amounts. TurkStat also stated that it will release the index instead of the amount. The institution said it will use the international standard of Classification of Individual Consumption according to Purpose (COICOP 5), consisting of 144 items.
Russian and Turkish military officials met in Moscow to discuss the safe exit of Turkish merchant ships and grain export from Ukrainian ports, according to a statement from the Russian Defense Ministry. “The parties discussed the safe exit of Turkish merchant ships and grain export from Ukrainian ports, as well as approaches to ensuring safe navigation in the Black Sea,” the ministry said. The sides reached an agreement to continue consultations. A few hours after the meeting, the Turkish vessel Azov Concord departed Mariupol port as the first foreign ship.
The Financial Services Confidence Index dropped by 4.9 points to 168 points in June, compared to the previous month, according to the Central Bank.
The Central Bank’s Monetary Policy Committee (PPK) will announce the interest rate decision (2.00 p.m.).
The Banking Regulation and Supervision Agency (BDDK) and the Central Bank will release weekly monetary and banking statistics (2.30 p.m.).