MPC: No Surprises This Month

TURKEY - Report 25 Sep 2014 by Murat Ucer

This time, in line with the consensus view, the MPC left all interest rates unchanged (see graph). This is not too surprising, because of a rather worrisome inflation outlook and the jittery external/currency environment.

As for the content of the statement, the Bank’s take on inflation dynamics appears to have turned somewhat more dovish and more benign, in our view.One reason behind this is probably domestic demand developments -- the reference to “private final domestic demand follows a modest course” is no longer there, replaced by “[e]xports remain supportive of balanced gro...

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