Turkish shares, lira firm, c.bank blames food prices for inflation
Turkish shares and bond prices were firm on Friday in lower volumes due to a U.S. holiday while lowe…Turkish shares and bond prices were firm on Friday in lower volumes due to a U.S. holiday while lower oil prices underpinned the lira which was hit on Thursday by higher-than-expected June inflation data.
The central bank on Friday cited high food prices as a factor behind the rise in June inflation figures, which showed a month-on-month increase of 0.31 percent after a poll forecast they would be unchanged.
The lira firmed to 2.1305 against the dollar by 0955 GMT from 2.1345 late on Thursday.
On Thursday, Economy Minister Nihat Zeybekci again urged the central bank to reduce interest rates on the grounds that the current level did not support investment and production.
Investors remained concerned by security issues along Turkey's long borders with Syria and Iraq, which limited the gains.
The yield on the two-year benchmark government bond stood flat at 8.38 percent.
Shares in electronics firm Vestel jumped more than 6 percent after news that Sharp is talking to Vestel about a licence to sell its white goods in Europe.
The main Istanbul share index rose 0.14 percent to 77,653.90, in line with the emerging markets share index which rose 0.11 percent.