Weekly Export Risk Outlook, July 2

07.03.2014 ZF English

The Turkish central bank announced a modest monetary easing, noted Euler Hermes in this week’s Export Risk Outlook report.

The bank lowered its key one-week repo rate by 75 basis points to 8.75%, following a 50 basis point cut in May, but kept the overnight borrowing and lending rates unchanged at their post increase levels from January, of 8% and 12% respectively.

The rate cut was implemented as credit growth is at reasonable levels and there is an expectation of declining inflation, Euler Hermes analysts noted.

The report also analyzes the banking crisis in Bulgaria and the contraction of the US economy in the first quarter.

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