In its August meeting minutes, the Central Bank of the Republic of Turkey (CBRT) noted that leading indicators for August suggest a sustained rise in the trend of inflation.
Additional takeaways as summarized by Reuters
“Tightening steps in liquidity policies have led to an increase in loan and deposit rates, and loan growth has started to decelerate.”
“Bank will continue with liquidity measures.”
“Services groups hardest hit by the pandemic such as transport, accommodation and food and beverages are picking up but continue to remain relatively weak.”
“MPC underscored the importance of the course of the current account balance in terms of a lasting recovery in economic activity and macro-financial stability.”
“Effects of the recent measures on credit growth and composition and external balance are monitored closely.”
“Positive signals for recovery in the services sector have increased, which are observed with a lag compared to those in the industrial sector.”
Market reaction
The USD/TRY pair largely ignored this publication and was last seen trading with modest daily losses near 7.3400.
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