The economic agenda will be intense this week. Tomorrow the inflation rate for February will be revealed. On Thursday, the interest rate decision will be announced. Here are the key points to know before this critical week… All eyes are on inflation and the interest rate decision in the markets. The Turkish Statistical Institute will release the inflation data for February tomorrow. Following the inflation data, attention will turn to the Central Bank of the Republic of Turkey’s (CBRT) interest rate decision. The CBRT will announce its second interest rate decision of the year on Thursday, February 6…
In addition, on Monday, domestic PPI, manufacturing sector PMI, banking sector net profit, Tuesday’s real effective exchange rate, Friday market participant survey, treasury cash balance data will be followed. In the markets, it is expected that the February inflation rate will be announced as 3 percent. In January, inflation was announced above expectations at 5.03 percent. In February 2024, monthly inflation showed an increase of 4.53 percent. It is predicted that yearly inflation will decrease from 42.12 percent to 40 percent. Economists expect the policy rate to be reduced by 250 basis points to 42.5 percent. End-of-year policy rate expectations are now around 30 percent… In January, the CBRT reduced the interest rate by 250 basis points to 45 percent. Leading indicators from Turk-Is and Istanbul Chamber of Commerce data indicated that the increase in monthly inflation continues. According to the Istanbul Chamber of Commerce data, retail prices in Istanbul increased by 3.19 percent in February. The annual increase was 45.35 percent. Turk-Is’ kitchen inflation data saw an increase of 5.39 percent in February. The twelve-month change rate in kitchen inflation was 43.47 percent, with an annual average increase of 57.73 percent.
After the reduction in the patient participation fee for public health institutions, inflation expectations were revised downward. The patient examination participation fee at state hospitals was reduced from 45 liras to 20 liras. With this decision, economists updated their February inflation expectations from around 4 percent to around 3 percent. It was anticipated that the decision to increase the patient participation fee in January would have a 1.5 percentage point upward impact on annual inflation.