One of the most important indicators of the economic difficulty the country is facing is the companies’ declaration of concordat—the restructuring agreement between the debtor and its creditors. This is an issue of debate.
Turkey’s current account balance that posted a significant deficit in September last year produced a surplus of $1.8 billion in the same month of 2018.
In light of Turkey’s current inflation rate, many market players say the Central Bank should hike interest rates again in its committee meeting this week. Despite this, very few market players expect any rate hike decision in the Monetary Policy Committee meeting, which will be held on Oct. 25.
The markets were relieved by the release of United States Pastor Andrew Brunson.
The necessity to find a solution to relations between the real sector and banks as well as the problem of high debts stand as a clear-cut reality.
While the new economic program (YEP) did not create the expected positive reaction, markets are now waiting to see how the program will be shaped in detail and how it will be implemented.
Even though it has been deemed to be positive due to the realistic targets it entails, the new economic program (YEP) could not restore confidence, especially among foreign investors.
The recent interest rate decision by Turkey’s central bank was a positive development for markets.
In recent days, the most important reason behind an ease in the foreign currency rates is an expected rate hike decision by the Central Bank in its meeting this week. Now the question is whether the interest rate hike will be three or five points.