The economy world and markets are concentrated on the Central Bank’s Monetary Policy Committee (PPK) meeting today. USD/TRY exceeded 9.37 after a 100-basis point interest rate cut. Prior to the PPK meeting, TRY appreciated and fell to 9.23 yesterday against USD and hovers around 9.27 today. The decrease stemmed from the possibility of the PPK to keep the interest rate steady, according to the economy circles. USD/TRY is likely to see 8.80 levels if it does so.
On the other hand, if the Central Bank reduces interest rate over 100 basis points, USD/TRY may see 9.80 levels, according to analysts. In line with surveys, the interest rate may be reduced around 50 basis points. On the other hand, analysts say the interest rate cut wave doesn’t end yet even though the one-week-repo rate remains steady while fluctuations in the market will continue in the upcoming. The policy rate was lowered from 19% to 18% at the previous PPK meeting.
Vice President Fuat Oktay submitted the budget for 2022 to the Parliament’s Planning and Budget Commission. Oktay said they’ve allocated TRY 68.9bn from the 2022 budget for the real sector supports.
The UK Prime Minister Boris Johnson announced 18 new investment deals worth GBP 9.7bn. Turkish paper manufacturer Eren Kagit and on demand delivery service Getir are among companies to invest in the UK. Their total investment will amount to GBP 600m.
DAILY AGENDA
The Central Bank will announce the interest rate decision (2.00 pm).
The Consumer Confidence Index dropped by 3.6% to 76.8 points in October, compared to the previous month, according to the Turkish Statistical Institute (TurkStat).
The Central Bank and the Banking Regulation and Supervision Agency (BDDK) will release weekly money and banking statistics (2.30 pm).
READ SELECTED ARTICLE FROM OUR PRINT MAGAZINE
