Central banks hint at rate hikes, Turkish GDP figures

Central banks in both Russia and Turkey created a stir this week by raising the prospect of rate hikes, but we think that the degree of tightening in Turkey will disappoint markets and policymakers in Russia will probably leave interest rates unchanged. Meanwhile, Turkish GDP data due to be released on Monday are likely to show that growth was strong in Q2. But this will only highlight why the economy has suffered such a severe adjustment since then.