The Central Bank’s Monetary Policy Committee (PPK) has kept the interest rate steady at 19% in line with expectations following the critical June meeting. Inflation risk has been emphasized while ‘tight stance’ and ‘decisively’ expressions has been included in the statement. Meanwhile, the interest rate is expected to be lowered in July if there isn’t a new sharp depreciation in TRY, according to a report prepared by Capital Economics.
On the other hand, vaccination rapidly continues in the country. Over 1.5 million doses of COVID-19 vaccines were given more than two hours before a 24-hour cycle yesterday, according to Health Minister Fahrettin Koca. Over 38.8 million people have totally vaccinated to date, while 14.1 million of them have received the second dose.
In the meantime, the number of daily coronavirus cases reached 5,904 and the death toll dropped to 62 in the last 24 hours.
Looking at the money market with these developments, TRY depreciated by nearly 5% this week against USD. USD/TRY, which soared over 8.70 this week, hovers around 8.67-8.68 today. EUR/TRY is traded at just above 10.35.
Gold prices slightly recovered and exceeded USD 1,791 following the 2-day sharp decrease. Spot gold fell to USD 1,767 per ounce this week, the lowest level in the last 1.5 months. Brent crude dropped by 0.78% to USD 72.54 per ounce.
The short-term external debt stock increased by 4.5% to USD 144.7bn in April, compared to the end of 2020. Banks’ short term external debt stock rose by 1% to USD 58.5m and other sectors’ short-term external debt stock surged by 5.5% to USD 62.3m in this period.
The number of newly established companies increased by 30.3%, while the number of liquidated companies rose by 8.4% in May, compared to the same month of the previous year, according to the Union of Chambers and Commodity Exchanges of Turkey (TOBB).