Page 27 - bne_newspaper_October_26_2018

Weekly Lists
October 26, 2018 www.intellinews.com I Page 27
bne:Credit Turkish rates kept
on hold as widely expected, market likes decision
As widely expected, the rate-setters at Turkey’s central bank on October 25 opted to keep the national lender’s policy rate at 24%.
Responding to the decision, outlined in a press release from the central bank’s Monetary Policy Committee (MPC), Timothy Ash of Bluebay Asset Management said in a note to investors: “No change — no surprise. All focus on October CPI [with the latest consumer price inflation data to be announced on November 5] for the main act.”
Following the MPC decision to keep its policy rate (the one-week repo auction rate) constant, the Turkish lira had as of around 17:45 local time strengthened 1.23% d/d against the US dollar to trade at 5.6306. The lira has lost around a third of its value against the dollar in the year to date.
Russia's finance ministry placed only RUB4.1bn ($62.6mn) out
of RUB10bn of OFZ federal bonds offered at a weekly auction on October 24. The ministry surprisingly decided to place long 15-year bonds maturing in 2034, after carefully returning to the market with small amounts of shorter-term OFZ issues.
Since August the OFZ market has been under heavy pressure and a selloff by foreign investors amid renewed sanction fears. The ministry cancelled four consecutive auctions in September, and returned to the market this month with successful auctions on October 3, October 10, and last week’s RUB10bn placement of six-year bonds.
The Azerbaijani government has raised its official forecast for next year’s GDP growth to 3.6% up from an earlier projection of 3.1%, Trend reported. The forecast was made in the draft state budget for 2019.
The government further expects 3.8% growth in 2020, 3% in 2021 and 2.7% in 2022. Both the 2020 and the 2021 figures have been boosted, while this is the first time the government has issued
a forecast for 2022.
Azerbaijan’s 2019 draft state budget is based on an oil price of $60 per barrel. It envisages revenues of over AZN22.9bn and spending of just over AZN24.78bn, according to Trend.
Russia's OFZ pressure far from over as finance ministry fails to place long bonds
Azerbaijan’s government hikes 2019 growth forecast to 3.6% in draft budget