Bi-Weekly Report 1-14 October 2019
TURKEY
US imposes (“soft”) sanctions on Turkey over its military operation in Syria
The “unbudgeted” transfer of the CBRT’s excess “legal reserves” to the Treasury helped reduce the 12-month rolling budget deficit to 2.2% of GDP in September from a 8-year high of 3.0% in May -- still above the FY:18 outcome of 1.9%
ROMANIA
A centre-right PNL- led Government is expected to take office following the collapse of the PSD Government
The NBR maintained its 2-week repo rate unchanged at 2.5% for a 17th consecutive month
CYPRUS
EC-ECB and IMF missions confirmed the country’s strong macroeconomic performance, while stressing the need to address the remaining challenges
Tourist activity weakened further in 8M:19, dragged down by the EU markets, including the main source country, the UK
EGYPT
The CBE cut its key policy rates by an additional 100 bps in September, due to a sharp easing in inflation and EGP appreciation
Weaker support from Suez Canal receipts (SCR) to the current account in FY:18/19 fiscal year (that ended in June)
APPENDIX: FINANCIAL MARKETS