Bank of Korea Nominee Shin Hyun-song Signals Possible Rate Hike Amid Middle East Inflation Fears 
Bank of Japan's Ueda Flags Low Real Interest Rates as Key Factor in Rate Hike Timing 
Paraguay Holds Interest Rate at 5.5% as Inflation Remains Stable Amid Global Uncertainty 
Gold Prices Fall Amid Rate Jitters; Copper Steady as China Stimulus Eyed 
Singapore Tightens Monetary Policy Amid Middle East War Inflation Risks 
New Zealand Economy Faces Short-Term Pressure but Recovery Remains on Track 
U.S. Stock Futures Edge Higher as Ceasefire Extension and Intel Earnings Lift Sentiment 
Dollar Weakens Amid Middle East Tensions and Anticipated Central Bank Decisions 
Morgan Stanley: Fed Rate Cuts Still on Track Despite Oil-Driven Inflation 
U.S. Sanctions Target Chinese Refinery Over Iranian Oil Purchases 
The central bank of Turkey is expected not to slash interest rates this year, although there is no aim to raise rates either. CBT will delay tightening policy and will attempt to calm things down by tweaking FX liquidity measures, which will likely not work.
Unless markets calm down soon, USD-TRY could continue to spike, and this will trigger another negative spiral between exchange rate and inflation. CBT is likely to be pushed into a corner by the widening interest rate differential. It is one of the only remaining central banks around EM which is viewed by market participants as unable to hike rates because of political pressure.
The lira weakened sharply last week, with USD-TRY surpassing 3.27 at one stage on Friday.
Meanwhile, at USD-TRY of 3.25, imported inflation pass-through will escalate to faster than 10 percent by next month (via a combination of year-on-year acceleration in commodity prices and change in the lira), Commerzbank reported.
