TURKEY: Karahan Says CBRT ‘Fully Committed’ to Price Stability
Speaking at an event in Washington on the sidelines of the IMF-World Bank meetings, CBRT Governor Fatih Karahan said “Since day one, we’ve been laser-focused on price stability.” He pledged to maintain a tight policy stance until inflation converges to 5% target, and until then, the bank is focusing on its interim targets. Karahan aknowledged that the downward inflation trend had slowed recently and that whilst the central bank has made progress on credibility, it still has some way to go.
- The comments follow an acceleration in headline CPI for the first time since May last year, with the annual figure rising from 33.0% Y/Y in August to 33.3% Y/Y in September, exceeding market expectations of a slowdown to 32.5% Y/Y. On a sequential basis, headline inflation accelerated meaningfully, jumping from 2.0% M/M (nsa) to 3.2% M/M. Seasonally adjusted inflation rose 2.7% M/M in September compared to a prior 2.5%.
- Given the Bank's data dependent, meeting-by-meeting stance, it is expected to slow down the pace of rate cuts from the prior 250bps when it meets next week.
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IMF: NY Post-Bessent Chief Of Staff Set To Become Seniormost US Off. At IMF
The New York Post reports that, according to its sources, US Treasury Secretary Scott Bessent's chief of staff, Dan Katz, is set to leave the administration to take up the post of first deputy managing director of the International Monetary Fund (IMF). Speaking on the sidelines of the IMF and World Bank spring meetings in Washington, D.C., earlier this year, Bessent criticised both organisations, claiming that “mission creep has knocked these institutions off course".
- Bessent argued the IMF has the mission of "promoting global monetary cooperation and financial stability", but instead is focused on progressive social issues. Bessent: "The IMF and World Bank serve critical roles in the international system. And the Trump Administration is eager to work with them — so long as they can stay true to their missions.”
- If appointed, Katz would become the seniormost US official at the IMF, second only to Managing Director Kristalina Georgieva. Historically, the IMF has always been led by a European, while an American has served as president of the World Bank, although this is not a formalised split. The appointment of a senior Trump administration figure to such an influential role at the IMF would draw attention towards the global lender of last resort.
EUR: EURCAD hits a fresh 16yrs High
- Just a 19 pips swing for now in the USDCAD, initially fell but remains fairly close to where it trading at pre decision.
- The one to watch is the EURCAD that did managed a new 16yrs high, highest since July 2009.
- Immediate resistance is still right here at 1.6330, this was the June and July 2009 highs.
(Chart source: MNI/Bloomberg Finance LP).
