In the wake of significant sell-off pressure, Turkey’s central bank reportedly expended $12 billion to stabilise the lira, which plummeted nearly 4% after Istanbul’s mayor’s arrest. This week, the lira stabilised around 38 USDTRY, buoyed by rising overnight interest rates. Predictions indicate the bank will maintain current rates in April and limit cuts, likely keeping the policy rate above 30% by year-end.
Lebanon experienced a slight dip in inflation, falling to 15.6% in February from 16.1% in January, despite the ongoing conflict. The easing was chiefly due to reductions in clothing, footwear, household equipment, and communication costs. Conversely, Kuwait’s inflation lingered at 2.5% for the third month, even as clothing and recreation prices softened, expected to remain high through the year.
Matthew Pritchard, leading Business Development in the Middle East for Oxford Economics, oversees subscription sales in the region. He holds a Master’s in Management and a Bachelor’s in Philosophy from the University of Sheffield, previously working with Fitch Solutions in Dubai.
Scott Livermore serves as Chief Economist and Managing Director at Oxford Economics Middle East in Dubai. His impressive credentials include extensive project leadership within the GCC and Asia, focusing on macroeconomic modelling and policy evaluations for governments, alongside a solid educational background in Economics and Philosophy, Politics, and Economics from esteemed institutions.
Turkey’s central bank spent $12bn to steady the lira, which stabilised at 38 USDTRY after a sharp drop. In Lebanon, inflation eased to 15.6% in February, while Kuwait’s inflation remained steady at 2.5%. Observations from economic leaders underscore proactive approaches to managing macroeconomic conditions in MENA.
In summary, the efforts by Turkey’s central bank to prop up the lira through substantial financial outlays showcase the delicate balance of economic stability amidst growing political turmoil. Meanwhile, other MENA nations like Lebanon and Kuwait demonstrate varied inflationary pressures, reflecting the complex economic landscape of the region. The insights from key figures like Matthew Pritchard and Scott Livermore highlight the importance of strategic economic planning in achieving regional stability and growth.
Original Source: www.oxfordeconomics.com
