Highlights

  • Real GDP growth in the US was revised down to an annualized 2.2% y/y (2nd estimate) in 1Q18 from an annualized 2.3% y/y (advance estimate). Turkish economy grew by 7.4% y/y in 1Q18.
  • Based on rapid estimates, in April 2018 economic growth came in at 7.3% y/y in Armenia, 6.5% y/y in Georgia, 4.4% y/y in Kazakhstan and 1.7% y/y in Russia. In 4M18, GDP was up 4.8% y/y in Belarus and 1.2% y/y in Azerbaijan.
  • In May 2018, annual inflation in the US was 2.8% up from 2.5% in previous month. Based on the Eurostat flash estimate, annual inflation in EU19 was 1.9% in May 2018 up from 1.2% in April 2018.
  • In May 2018, annual inflation was below to the target level in Georgia (2.5%), Russia (2.4%), Armenia (1.6%) and Belarus (4.4%); inflation was below expectation in Azerbaijan (2.0%); Inflation was within the target in Kazakhstan (6.2%), and above the target in Turkey (12.2%) and Ukraine (11.7%).
  • The Federal Reserve (central bank of the US) raised the target range for the federal funds rate for the 2nd time this year by 25 basis points to 1.75%-2.0%, in June 2018.
  • Monetary policy rate was raised to 17.75% (from 8.0%) in Turkey and cut to 9.0% (from 9.25%) in Kazakhstan as of 14 June 2018. The policy rate has remained unchanged in other countries as of mentioned date.

Please see the full report for detailed coverage of the fixed income markets of Georgia, Armenia, Azerbaijan, Belarus, Kazakhstan, and Ukraine.