Stock market investors took a breath after a long break this week. The weekly rise exceeded 8%, with the BIST100 index testing levels above 10,500 points. The index reached levels unseen since August. The volume was also high, excluding the last day of the week. The daily volume in the BIST100 index reached 170 billion lira. On a typical day, the volume ranges between 100-120 billion lira. 1- Recovery from the bottom: The BIST100 index dropped to 9,422 points on February 28th due to political movements and global developments. It hit its lowest level since November. This week saw a rebound from this point. 2- Inflation still a question mark: Inflation came below expectations in February at 2.27%, while the expectation was 3%. The drop was mainly influenced by reduced health participation fees and price decreases in clothing and footwear. The reduction in health costs was a one-time effect. Also, the new season is starting for clothing and shoes. Therefore, it is unlikely for inflation to surprise, as it did in February, in the coming months. 3- Central Bank remains “cautious”: At the beginning of this year, economists were unanimous that the Central Bank would lower interest rates at every meeting. Central Bank Governor Fatih Karahan saying that “We are not on autopilot, we will act if necessary” raised concerns that this might not happen. This had a negative impact on the stock market. Now, the view that an interest rate cut will be made in every meeting has returned again. However, this is not a new idea and does not imply that the Central Bank will not continue its tight monetary policy. 4- Deposit interest rates remain high: The continuation of the Central Bank’s tight monetary policy means that the interest in deposit interest rates will also persist. Data from the Banking Regulation and Supervision Agency also reveals an increasing interest in time deposits. The volume of time deposits, which was 6 trillion 62 billion lira in the week of December 13, reached 6 trillion 307 billion lira in the week of February 28. The volume increased by 4% in 2 months. 5- Trump shaking the world: It has been 1.5 months since Donald Trump took office as President of the U.S. During this period, each of his statements caused fluctuations in the markets. His statements regarding import tariffs especially increased selling pressure in the markets. Due to this uncertainty, coupled with the influence of this environment, foreign investors’ interest in Turkey continues to remain weak.