Weekly Economic Highlights: CBRT’s Rate Decision, Fed Minutes, Japan’s Inflation, and More

This week, significant developments included the CBRT’s interest rate decision in domestic markets and the Fed minutes, Japan’s inflation figures, and Eurozone PMI data in global markets.

  1. CBRT Holds Interest Rate Steady The Central Bank of the Republic of Turkiye (CBRT) maintained its policy rate at 50% for the second consecutive month in May. The Monetary Policy Committee indicated plans to take additional steps to manage excess liquidity in the system.
  2. Fed Minutes Signal Balance Sheet Reduction The Federal Reserve’s minutes revealed concerns about inflation, with some officials prepared to tighten monetary policy if inflation risks rise. The minutes also highlighted plans for a faster balance sheet reduction.
  3. People’s Bank of China Keeps Loan Rates Unchanged The People’s Bank of China left its one-year and five-year loan prime rates at 3.45% and 3.95%, respectively, in line with economists’ expectations.
  4. Inflation Eases in Japan Japan’s inflation slowed for the second consecutive month, with consumer prices rising by 2.5% in April, down from 2.7% in March.
  5. Eurozone PMI Shows Strong Growth The Eurozone’s private sector activity reached its highest level in a year, with S&P Global’s Purchasing Managers’ Index (PMI) rising to 52.3 in May, indicating continued economic recovery.
  6. US Second-Hand Home Sales Decline The National Association of Realtors reported a 1.9% decrease in second-hand home sales in April, dropping to 4.14 million units, below market expectations of 4.21 million.
  7. US Unemployment Benefit Applications Decrease The US Department of Labor reported an 8,000 decrease in unemployment benefit applications for the week ending May 18, with the total number falling to 215,000, better than the expected 220,000.

Source: Bloomberght / Prepared by Irem Yildiz

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