The Switzerland-based Credit Suisse analysts, who attended the Central Bank’s (CB) investor meeting held separately with Turkish and foreign economists on December 2, said in a report that the CB may not continue to reduce the policy rate at the Monetary Policy Committee (PPK) meeting on December 16. During the CB’s closed-door meeting, Deputy Governor Mustafa Duman said the PPK will decide between a rate cut and a pause on December 16, and Kavcioglu intervened by saying that “The chances of no rate cut on December 16 had increased,” the report said. However, Turkish economists received a clear message that the CB will continue rate cuts.
The cost of living jumped by 50.18% in Istanbul in a year, according to the Istanbul Planning Agency’s (IPA) survey results posted by Istanbul Metropolitan Municipality Mayor Ekrem Imamoglu on his Twitter account. Within a year, rental house prices rose by 71.43%, while sunflower seed oil prices climbed by 137.59%, wheat flour prices rose by 109.14%, liquefied petroleum gas (LPG) prices increased by 102.72%, toilet paper prices surged by 90.75%, granulated sugar prices were up by 90.71% and egg prices increased by 40.21%. Data on prices of 321 products were collected from 3,000 different points in the city for market research. The surveyed products were determined based on the results of an interview carried out with 1,600 houses in 2020.
Consumer Price Index (CPI)-based real effective exchange rate (REER) fell from 60.11 to 54.33 in November, compared to the previous month, and saw the lowest level since 1994 when the data started to be recorded. The decline in REER means TRY devaluation in real terms and a decrease in prices of Turkish goods in terms of foreign goods. The change in REER is closely followed in terms of the Central Bank’s responses to the reflection of value changes in TRY on inflation.
DAILY AGENDA
The Ministry of Treasury and Finance will reissue 5-year (1,729 days) semiannually fixed coupon bond and 7-year (2,471 days) semiannually floating rate note.
The Ministry of Treasury and Finance will release cash realization report for November (5.30 pm).
The Minimum Wage Determination Commission will hold the second meeting (2.00 pm).
The Parliament will discuss the 2022 budget of the Parliament, Ministry of Energy and Natural Resources, and Ministry of Youth and Sports.
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