Key Economic and Financial Developments of the Past Week
Last week highlighted the acceleration in US inflation, the CMB's new regulations, Morgan Stanley's assessment of the Turkish lira, the CBRT's interest rate decision, and the Apple launch.
Last week, the economic and financial agenda focused on the acceleration of inflation in the US, the Capital Markets Board taking new principle decisions to address international criticisms, and the Central Bank of the Republic of Turkey keeping its policy rate constant.
Expected Increase in US Inflation
In the United States, monthly inflation in August showed an increase in line with expectations.
The rise in core inflation on a monthly basis strengthened views among Federal Reserve officials that interest rates could be raised next week.
Index Provider Step from the CMB
Following criticisms from international index providers, notably MSCI, the Capital Markets Board implemented regulations one after another.
With the new principle decisions it adopted, the Board made significant changes regarding companies' actual free float calculations and share ownership issues, thereby resolving uncertainties in the sector.
TL and Carry Trade Analysis from Morgan Stanley
Economists at US investment bank Morgan Stanley projected that nominal returns will continue to remain well above the depreciation of the Turkish lira.
As a result of this assessment, it was stated that carry trade transactions denominated in Turkish lira continue to maintain their appeal.
CBRT Left Interest Rates Untouched in September
The Monetary Policy Committee of the Central Bank of the Republic of Turkey acted in complete alignment with market expectations.
At its September meeting, the Committee decided to keep the policy rate steady at 37 percent.
Interest Rate Hike from the European Central Bank
The European Central Bank signaled that inflation would continue to hover well above 2 percent.
The bank chose to raise interest rates for the second time since the outbreak of the Iran war in February and raised its inflation projection.
Expectations for a Fed Interest Rate Hike Strengthened
It was announced that producer inflation in the US rose to an annual rate of 5.4 percent in August.
Following this development, the probability of the Fed implementing a 25 basis point interest rate hike at its meeting next week approached 70 percent in market pricing.
New Product Launch by Apple
Apple appeared before the tech world by organizing a widely attended event at its headquarters in Cupertino.
At this event, the company introduced its first foldable phone, the iPhone Duo, alongside the iPhone 18 Pro series, Apple Watch Series 12, and Ultra 4 models.
This launch held special significance as it was the first major product presentation where the company's new CEO, John Ternus, took the stage.