What matters this morning

Foreign Minister Mevlut Cavusoglu and Transportation and Infrastructure Minister Adil Karaismailoglu informed the public about the recent status of wildfires with a joint news conference held at the coordination center of the Disaster and Emergency Management Authority (AFAD) in Manavgat district. “We managed to prevent the blazes from advancing further,” said Cavusoglu stressing that they aim to bring them totally under control today as the wind may slow down. 6,511 people and 1,832 vehicles from air and land have engaged in struggle against wildfires. Meanwhile, 700 people have been injured and affected by the fires to date. 757 of them were discharged from hospitals and six of them continues to receive treatment, according to Cavusoglu. 1,352 buildings are damaged, destroyed or needs to be rebuilt.

On the economy side, annual inflation is expected to see above 19% in August, according to analysts considering the upward impact of developments in food and energy prices on consumer prices.  Taking into account the Central Bank Governor Sahap Kavicioglu’s discourse to keep interest rate above the inflation versus President Erdogan’s messages about the policy rate cuts, a new debate is likely to spark. Analysts agree that there will be a pressure on the bank if the annual inflation surpasses the interest rate. They also mention that autumn will be challenging while no change is expected in the Central Bank’s stance and monetary policy.

Looking at the money market, USD/TRY which saw 8.57 and was balanced at 8.53 yesterday, is traded at 8.55 this morning, while EUR/TRY slightly increased to 10.11. Spot gold hovers around USD 1,800 per ounce and brent crude stands at USD 71.88 per barrel.


The Central Bank will release its Survey of Market Participants.

The Ministry of Treasury and Finance will release Treasury Cash Realizations for July (5.30 pm).

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