The Turkey's 2-year bond prices is unchanged on Monday as annual inflation rate rose less than expected in March and slowed to a 7-month low because of easing food prices, putting more pressure on policymakers to unleash another round of stimulus in the upcoming policy meet . The yield on two-year benchmark government bonds closed steady at 9.74% on Friday.
The consumer price index rose 7.46 pct in March from a year earlier and dropped 0.04 pct from the previous month, the state statistics agency said Monday.
The March inflation rate had been forecast to rise 0.6 pct on a monthly basis, bringing annual inflation to 8.1 pct and Turkey's annual inflation rate was at 8.8 pct in February. The domestic producer price index increased 3.8 pct in March from a year earlier and increased 0.4 pct from the previous month.
“All institutions must determinedly maintain the efforts that have been made in recent years in order to bring the inflation down to 5 pct permanently and macro-prudential measures which are taken for prudential borrowing constitute a favorable ground for the anti-inflation struggle by contributing to the balanced growth," said Turkish Central Bank Governor Erdem Basci.
We think there is a chance of a dovish surprise, as part of a possible agreement by officials to stop openly criticizing the bank.
