TÜRKIYE
The weaker TRY and surging energy and food prices pushed up headline inflation to a 24-year high of 85.5% y-o-y in October from 36.1% at end-2021
Although favourable base effects will kick in over the next months, inflation is unlikely to fall back to comfortable levels anytime soon
The CBRT cut its key policy rate by another 150 bps, to 9.0%, confirming, at the same time, the end of its unorthodox easing cycle
An adjustment in monetary policy is crucial to preserving macroeconomic and financial stability
BULGARIA
Albeit having slowed, economic growth remained relatively resilient in Q3:22, despite strong headwinds from record-high inflation
Economic growth is set to slow down markedly in the period ahead, as private consumption and net exports will lose steam
SERBIA
Despite slowing economic growth, bank profitability strengthened in 9M:22, driven by higher net interest income (NII) and income from fees & commissions
Nonetheless, the sector’s profitability is set to come under pressure in the period ahead, due to a potential deterioration in asset quality
APPENDIX:
DETAILED MACROECONOMIC DATA
REGIONAL SNAPSHOT: MACROECONOMIC INDICATORS & FINANCIAL MARKETS