Russia

The Russian central bank is expected to hike the key rate by 50 basis points on Friday, taking it back to 8%. This comes as inflationary pressures are building and the rouble has been falling against the dollar. It hit its lowest level since March last year, recently, which is also more than 10% below its pre-invasion levels.

 

South Africa

The SARB is expected to leave its repo rate unchanged next week at 8.25% after what has been a very aggressive tightening cycle. It’s risen 4.75% since September 2021 but with inflation now close to target – fresh data for June will be released a day earlier on Wednesday – the time to pause may have arrived. Of course, a nasty shock from the CPI could change that.

 

Turkey

The CBRT will announce its latest interest rate decision on Thursday and another wide range of forecasts are likely ahead of the event. The central bank broke away from the unconventional policy approach adopted prior to the election and almost immediately abandoned after, so a large hike is likely on the cards. But the new CBRT Governor was more conservative than many expected at the last meeting and could be again this time. The lira remains near record lows though so the pressure is on. 

 

Switzerland

No major releases or events next week.