Archive for May 24th, 2018

Central Bank Watch

Central Bank of the Republic of Turkey

May 24, 2018

The world’s biggest currency market story earlier this week had been the accelerating dive of the Turkish lira, exacerbated by its central bank’s benign neglect of a deepening currency rout. To be sure, monetary officials were simply abiding by the substantial pressure from Turkish President Erdogan not to raise interest rates. A 275-basis point cumulative […] More

Central Bank Watch

National Bank of Ukraine

May 24, 2018

Ukraine’s policy interest rate was lifted four times within a half year: 100 basis points last October, December and March and by 15o bps in January. In a statement after keep the rate steady at 17.0%, the central bank board underlines that its belief that policy is now sufficiently tight to achieve the medium-term target […] More

Central Bank Watch

Bank of Korea

May 24, 2018

There has thus far been only one 25-basis point rate hike following five such cuts administered from March 2014 to June 2016, and a half year has now elapsed since that sole increase. This week’s decision to leave policy unchanged with the repo at just 1.50% was the sixth meeting in a row to end […] More

Central Bank Watch

South African Reserve Bank

May 24, 2018

A 25-basis point cut of the SARB repo rate to 6.50% in March had been the second such move since last July but was approved by only a thin 4-3 vote of the central bank’s monetary policy committee. Insofar as core inflation rose 0.4 percentage points in April to 4.5%, it was not surprising that […] More

New Overnight Developments Abroad - Daily Update

Turkey Attempts to Stop Lira’s Rout… Other Geopolitical Strains Simmer

May 24, 2018

The Central Bank of the Republic of Turkey hiked the late liquidity window interest rate by three full percentage points to 16.5% after the Monetary Policy Committee held an unscheduled meeting. The lira had been plunging in one-sided market conditions but rebounded over 6% following the announcement. Italian Prime Minister-Designate Conti met with party leaders, […] More

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