TRY started November with a promising outlook with optimistic messages following the Biden-Erdogan meeting on the sidelines of the G-20 Summit. USD/TRY hovers around 9.54-9.55 while EUR/TRY sees 11.08. However, markets have focused on inflation figures to be released on Wednesday. Annual inflation, which hit 19.58% in September, is expected to exceed 20% while the core consumer price index monitored by the Central Bank is estimated to surpass 17%. The policy rate remained below the headline and core inflation figures following the Central Bank’s latest interest rate cut. The difference between them also expected to increase in October.
On the foreign policy side, President Erdogan, who supposed to attend the COP 26 UN Climate Change Conference, returned to Turkey because Britain failed to meet Turkey’s demands on security arrangements. He told reporters the protocol standards Ankara sought were those always implemented on his international trips.
The National Defense Ministry resources said the delegations of the ministry and the U.S. Department of Defense plans to hold the second meeting on the F-35 dispute in Washington within few months.
Turkey has started a set of works which will increase minimum wages, reduce tax burden on low-income households who are affected more from inflation and will include regulation on those who face age obstacle in retirement, according to two government officials. Speaking to Reuters, they said the works will increase wages of low income and disadvantageous groups, hike all pensions to 2,000 at least, increase minimum wage and provide tax supports to low-income group. The Treasury and Finance Ministry declined to comment. Family and Social Services Minister Derya Yanik said TRY 2.5bn in aid will be provided to ease fuel and electricity expenses for needy citizens during the winter.
DAILY AGENDA
The Central Bank will release the net foreign exchange position of non-financial companies (2.30 pm).
The Parliament will continue to discuss the Law on the Foundation and Duties of the Turkish Exporters Assembly (TIM) and the Exporters’ Association and amendment of some laws.
The Parliament’s Planning and Budget Commission will discuss 2022 budget of the National Education Ministry.
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