What matters this morning

The Central Bank kept the interest rate unchanged at 19% in line with the market expectations.  left the interest rate as 19%. The current stance in the monetary policy will continue until a significant decrease will be provided in the estimation path of the April Inflation Report, according to the statement of the Monetary Policy Committee (PPK). Meanwhile, the ‘tight stance’ expression removed from the statement.

Change of ‘tight stance’ discourse with ‘current stance’ can be interpreted as the door was shut upon interest rate increase in all conditions and preparations slowly started towards expansionary steps, according to economists.

The Central Bank’s messages also affected the money market. Following the PPK meeting, USD/TRY dropped below 8.30 yesterday and started the last trading day of the week at similar levels. USD/TRY is traded at 8.29 while EUR/TRY slightly exceeded 10.00 this morning.

Gold prices have reached its highest level since February 16 with the impact of depreciation in USD and decrease in yields of the 10-year U.S. Treasury bonds. Spot gold saw USD 1,820 per ounce as of this morning.

Strong economic data of the U.S. and China provides upward support to oil prices. Brent crude increased by 0.19% to USD 68.22 per barrel compared to yesterday. The U.S. crude oil also reached USD 65.15.  


The overall export unit value index increased by 7.6%, while the overall import unit value index rose by 14.3% in March, compared to the previous month, according to the Turkish Statistical Institute (TurkStat). The overall export volume index increased by 32.3%, while the overall import volume index rose by 10% in this period.

The highest monthly real profit rate was realized in gold (ingot) by 3.89% and 6.61% in accordance with the Domestic Producer Price Index (D-PPI) and Consumer Price Index (CPI), respectively, in April, according to TurkStat.

The Ministry of Treasury and Finance will release cash realizations (5.30 pm).

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