Next week, all eyes in the country will be on the interest rate decision of the Central Bank of the Republic of Turkiye (CBRT). Abroad, Powell’s speech on Sunday, Fed meeting minutes on Wednesday and German growth data on Friday will be on the market’s radar.
As we approach the second half of the year, inflation concerns have decreased significantly around the world, while pricing regarding the steps central banks will take in the second half of the year continues to remain at the center of the agenda.
In the USA, the Consumer Price Index (CPI) increased below expectations with 0.3% on a monthly basis in April, while it rose in line with expectations with 3.4% on an annual basis. CPI increased by 0.4% monthly and 3.5% annually in March.
Core CPI, which does not include variable energy and food prices, also increased in line with expectations, with 0.3% monthly and 3.6% annually in April. Core inflation was 0.4% monthly and 3.8% annually in March.
In the country, the Producer Price Index (PPI) increased above expectations with 0.5% on a monthly basis in April, while the increase on an annual basis was within expectations with 2.2%.
Making a statement after the data in question, US Federal Reserve (Fed) Chairman Jerome Powell stated that the headline data in PPI was high, but the previous data were revised downwards, and described the data as “mixed”.
Analysts emphasized that the statements that Powell will make at Georgetown University tomorrow evening will be in the focus of investors and stated that the verbal guidance of Fed officials will be followed next week.
Analysts stated that clues about the steps the bank will take in the coming period will be sought from the minutes of the Fed’s last meeting, which will be announced next week.
After Powell’s speech tomorrow, next week, on Wednesday, existing home sales and the Fed’s meeting minutes, on Thursday, weekly jobless claims, new home sales, as well as preliminary manufacturing industry, service sector, and composite Purchasing Managers’ Index (PMI), and on Friday, durable goods orders and University of Michigan Consumer Sentiment Index data will be followed.
Next week, CPI data in the UK and growth data in Germany, as well as the minutes of the ECB’s last meeting, will be monitored.
On Monday, PPI in Germany, on Tuesday, trade balance in the Eurozone, on Wednesday, CPI and PPI in the UK, on Thursday, preliminary manufacturing industry, service sector, and composite PMI for the region, and on Friday, growth in Germany and retail sales data in the UK will be followed.
While the data to be announced in Japan next week comes to the fore, the tertiary industry activity index on Monday, core machinery orders and foreign trade balance on Wednesday, leading manufacturing industry and service sector PMI on Thursday and CPI data on Friday will be followed in the country.
No change is expected from the CBRT
Next week, all eyes in the country will be on the interest rate decision to be announced by the CBRT at the Monetary Policy Committee (MPC) meeting.
The median expectation of 26 institutions participating in the Bloomberg HT interest rate survey is that there will be no changes at the CBRT meeting.
Next week, foreign PPI and international investment position data will be followed on Monday, agricultural input price index on Tuesday, consumer confidence index as well as CBRT’s interest rate decision on Thursday, and financial services confidence index data on Friday.
Source: Bloomberght / Prepared by Irem Yildiz