Bi-Weekly Report 10-23 October 2017
TURKEY
Lending activity (FX-adjusted) rose sharply in 9M:17, largely benefiting from the Government's credit guarantees and relaxed macro-prudential measures
Customer deposits (FX-adjusted) accelerated in 9M:17, supported by dissipating uncertainty after the mid-April referendum and more attractive remuneration rates
The seasonally-adjusted unemployment rate receded by 0.4 pps q-o-q to 11.2% in Q2:17
ROMANIA
Headline inflation rose to a 4-year high of 1.8% y-o-y in September from -0.5% at end-2016, on the back of stronger domestic demand and higher food prices
Credit activity picked up rapidly in 9M:17, sustaining economic activity
BULGARIA
Headline inflation rose sharply to 2.1% y-o-y in September from 0.1% at end-2016, mainly due to higher energy prices
Credit expansion strengthened in 9M:17, underpinning the economic recovery
Customer deposits gained momentum in 9M:17, due to solid economic growth
SERBIA
Inflationary pressures heightened in 9Μ:17, but remained well anchored
NBS to keep its key rate on hold until the initiation of a new cycle of monetary policy tightening in Q3:18
FYROM
The ruling coalition is set to secure a landslide victory in the local elections, strengthening its hand to proceed with ambitious reforms
Customer deposit growth maintained momentum in 9M:17
Credit to the private sector picked up in 9M:17
ALBANIA
Electricity generation declined markedly in H1:17, due to adverse weather conditions
Headline inflation has eased since the beginning of the year due to softer food inflation (excluding fruit and vegetables)
CYPRUS
Banking sector bottom line deteriorated markedly in H1:17 due to a sharp rise in NPL provisions
EGYPT
Headline inflation eased for a 2nd consecutive month in September – down to 31.6% y-o-y from a 3-decade high of 33.0% y-o-y in July
A sharp decline in inflation during the next two months to strengthen the CBE's hand to initiate a new cycle of monetary policy loosening in January
APPENDIX: FINANCIAL MARKETS