No problems yet seen with banks struggling to roll over foreign loans, but investors are “being complacent” says analyst.
Given Turkey's economic difficulties, the central bank and lenders have not moved to provide cheaper loans as desired by ruling politicians.
Figures finalised before the surprise announcement of early elections show a small recovery in sentiment.
Regular survey shows respondents expect the rate to be nowhere near the central bank’s 5-7% upper target range.
Observers claim president is hurrying to hold the polls before the economy goes haywire, but the initial market response to his announcement is very positive.
Benchmark index down 1.76% d/d but Turkish lira and bonds relatively unaffected.
European Commission recommends start of accession negotiations for Albania and Macedonia, but French President Macron says Paris will oppose any enlargement until the EU reconfigures post-Brexit.
Landmark polls, after which the post of PM will be abolished in favour of a near all-powerful executive president, could be held as soon as August.
Latest data also shows Turkish auto production edged up 1% y/y to 159,464 units in March.
Higher loan-loss charges will reduce banks’ profitability and capital ratios, raising the the probability that foreign funding availability will fall, ratings agency says, noting 33% of Turkey’s bank loans are in foreign currency.
Across Q1, the deficit widened by 37% y/y to TRY20.4bn while the primary surplus declined by 51% y/y to TRY1.9bn.
Output growth slowed for the second consecutive month but industrial production has now been in growth territory for an uninterrupted 16 months.
Year on year, however, the figure is a clear improvement on January 2017's 13%.
Some $20bn erased from value of Turkish equities since start of April amid country's litany of economic and political woes.
Response to claimed use of chemical weapons appears to have been carefully calibrated to avoid putting Moscow into a position where it might have to react militarily. Russia has accused the US of international “hooliganism”.
Turkish equities experience net decrease of $57mn while debt securities lose $242mn in week to April 6.
Net foreign exchange reserves also declined, decreasing by $2.6bn w/w to $26.7bn as of April 6, the lowest level since 2005.
Turkish lira takes a breather from five days of steep devaluation as populist president lashes out at international investors
Economic research house sees lira descending to an all-time low that the central bank will not be able to ignore despite the political heat.
Deficit beats market expectations but that small victory and an intervention from the PM to assure markets of central bank's monetary role do little to put brake on devaluation.