The most important agenda ahead for the week is the Central Bank’s interest rate decision to be announced on August 12. The bank will keep the policy rate steady at 19%, according to the market surveys. However, messages to be included in the Monetary Policy Committee’s (PPK) statement will be crucial.
Moreover, Turkish Statistical Institute (TurkStat) will release labor force statistics, industrial production index, house sales and current account balance figures this week. The international credit rating agency Fitch Ratings is also expected to announce Turkey’s outlook. The institution has previously revised the country’s Long-Term Foreign Currency Issuer Default Rating (IDR) to Stable from Negative and affirmed it at ‘BB-’.
On the other hand, the Economic Coordination Council (EKK), which was formed within the scope of the Economic Reform Package, holds the first meeting today under the presidency of Vice President Fuat Oktay. The national economic developments, global economic outlook, current status in economic reforms, and preparation works towards the ‘Medium-Term Program for 2022-2024’ will be discussed at the meeting.
Looking at the money market today, USD/TRY which had increases successively for four days after seeing 8.30 last week, hovers around 8.64 this morning. EUR/TRY is traded at 10.16.
Gold prices fell to USD 1,684 following stop-loss sales, while sudden decline in prices caused risk appetite to decrease. Spot gold dropped by 0.72% to USD 1,750 per ounce this morning. Oil prices also decrease due to concerns over decline in travel following the spread of the COVID-19 delta variant. Brent crude fell by 2.45% to USD 68.97.
The Ministry of Treasury and Finance will release the average maturity and cost of domestic borrowing as well as the total domestic debt rollover ratio for July. (5.30 pm).
IN OUR MAGAZINE THIS WEEK:
>> On the cover: Sehir Hatlari, an Istanbul Metropolitan Municipality (IBB) subsidiary providing public sea transportation services in Istanbul, is on our cover this week. The company has gone through many changes in its 200-year history. But since Sinem Dedetas, the first ever female general manager of the company, took over in August 2019, changes have accelerated. Dedetas tells her plans to make TRY 130m in revenues this year. You can read the details on pages 14-15.
>> Professor Ilter Turan: The last fort of Arab Spring is falling. P. 10.
>> Q&A: Prof. Dr. Habip Asan, President of the Turkish Patent and Trademark Office, Chairman of the Technical and Operational Support Committee of the European Patent Office. P. 11.
>> Diplomacy: ‘Trade remained strong despite pandemic and Brexit: Envoy’. P. 12.
>> Interview: Turkish baby’s taste to cross borders. You can read the details on page 13.
>> Startup: KYB Law Firm provides ‘holistic’ support for start-ups. You can read the details on page 16.
>> Mehmet Kara: Power goes out as electricity prices hit cap. P. 22.
>> Our foreign policy columnist Zeynep Gurcanli looks into the ‘New crises with the U.S.’ on page 24.
>> Do not mis Time Out alternatives for the week.