Limited rise in Dollar and Euro! How much are Dollar and Euro worth today? Foreign exchange prices as of March 4, 2024
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Consumer and producer price indices will be published today at 10:00. The data will give an idea about the fight against inflation on which the CBRT bases its tightening of monetary policy and the main trend of inflation.
CBRT, which increased the policy rate to 45 percent in January, stated that it would not change the interest rates until a permanent decline in the main trend of inflation was achieved and inflation expectations approached the CBRT’s forecasts, and pointed out that it would tighten its monetary policy stance further if it saw a deterioration in the trend.
CBRT predicts that annual inflation will peak at 73 percent in May and decrease to 36 percent at the end of the year. Economists similarly expect the peak in May to be close to the 73 percent predicted by the CBRT, but the general expectation is that the decline in inflation will be more limited.
According to the Reuters survey, as a result of the increases in food and service prices, the Consumer Price Index (CPI) is expected to increase by 3.7 percent monthly in February, and the annual CPI is expected to increase to 65.7 percent.
Inflation is expected to be 42.7 percent at the end of 2024, well above the CBRT’s 36 percent forecast.
IT LOST VALUE BY 6 PERCENT
While Dollar/TL started the new week at 31.4060 with a limited increase compared to Friday evening, the rate of depreciation did not show a significant change when looked at on a monthly basis. TL, which has lost 6 percent of its value since the beginning of the year, lost 2.7 percent in January and 2.9 percent in February. TL has been losing regular and limited value since September. Euro TL is traded at 34.90.
Looking ahead to the rest of the week, the CBRT will publish its assessment of February inflation figures tomorrow.
On Friday, the credit rating agency Fitch is expected to publish an assessment of Turkey’s credit rating.
Looking at global markets, investors this week will monitor data that will shape their expectations regarding interest rate decisions from major central banks, central bank statements and interest rate cuts.
US Federal Reserve (Fed) Chairman Jerome Powell will speak to the US House of Representatives and answer questions on Wednesday and Thursday. Canada will announce its interest rate decision on Wednesday, and the European Central Bank (ECB) will announce its interest rate decision on Thursday.
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