Turkey’s economic downturn hits for two years and rises to 17.5% | Business and Economic Affairs

The annual inflation rate in June exceeds expectations as the lira continues to fall against the US dollar and the euro.

Turkey’s recession continued by two years to 17.53% in June, surpassing 17% forecast and continuing to rise after a short period of time, which could delay any interest rate by the end of the year.

Consumer monthly turnover on Monday was also higher than expected, rising by 1.94% according to the Turkish Statistical Institute, compared with a survey that Reuters news agency predicted 1.50%.

The rise in prices, which has doubled in the last four years, has been due to lower prices for the lira, economic losses and greater demand as the economy boomed from the coronavirus epidemic.

The drop was even higher when President Recep Tayyip Erdogan took over He fired the governor of a large hawkish bank in March, raising concerns of an early-than-expected reduction in interest rates by 19%.

Researchers have said that the low cost of living will reduce anxiety. The Lira did not change to 8.6825 against the dollar at 08:01 GMT on Monday, compared to Friday at the end of 8.7.

“It seems likely that the promise of a major bank with a fixed price will be tested by a headline that could go beyond” 19%, “Ash Ash of BlueBay Asset Management, according to Reuters.

In May, the sudden decline fell to 16.59 percent while inflation was delayed due to the closure of COVID-19. It has been in turmoil since last September and even the start of the recession.

Manufacturing inflation rose 4.01% in June-month with a sharp increase of 42.89% year-on-year. This represents a 17% drop in spending since mid-March, which has raised the prices of all Turkish dependents.

Transportation prices rose more than 26% year-on-year in June, showing strong prices, while real estate prices were higher, data showed.

Central Bank Governor Sahap Kavcioglu said on Friday that inflation could be higher than expected this month and next, but monthly moves would not affect the end of the year. 12.2% Map, two sources who called the fundraiser said, according to Reuters.

They said Kavcioglu said the bank expects inflation to signal the first fall of the fourth quarter as soon as possible.

The inflation forecast predicts by the end of the year for the bank “looks very good”, says Ash of BlueBay.

The escalating political crisis over the independence of the banks is compounded by the growing Erdogan, known as the “enemy” of interest rates, abruptly ousting the last three governors in two years.