Central Bank of the Republic of Turkey

Rate Cut in Turkey

September 12, 2019

Policymakers at the Central Bank of the Republic of Turkey slashed the one-week repo rate by a greater-than-expected 325 basis points in follow-up to a 425-basis point cut in July from a peak of 24.0% that had prevailed since a 625-basis point increase in September of 2018. The rate now becomes 16.5%, which the monetary […] More

Markets React to ECB Stimulus, U.S. CPI Data, and Continuing Hopes on Trade Talks

September 12, 2019

Policymakers at the European Central Bank as expected cut the deposit rate by 10 basis points to minus 0.50%, announced an open-ended asset purchase program to start in November at EUR 20 billion per month, said targeted LTRO operations will carry the average deposit rate, and introduced a a 2-tiered system of reserve remuneration in […] More

Turkey Gets a Big Central Bank Interest Rate Reduction

July 25, 2019

Turkey’s Monetary Policy Committee slashed its one-week repo rate by 425 basis points to 19.75%. That’s a bigger cut than analysts were anticipating but does not completely reverse the final tightening move last September, which was an increase to 24.0% from 17.75%. A statement released by the Central Bank of the Republic of Turkey observes […] More

ECB and Turkish Monetary Officials Send Dovish Signals

July 25, 2019

The European Central Bank Governing Council left policy settings unchanged but signaled likelihood of a multi-pronged stimulus after September’s fuller review. A zero percent refi rate has been flanked by a negative 0.40% deposit rate and a 0.25% marginal lending facility rate since cuts made in September 2016. The ECB leadership is in transition; IMF […] More

Several Reassuring Developments

March 25, 2019

Last Friday had been a brutally difficult day in financial markets after the U.S. 3-month T-bill rate moved above the 10-year Treasury note yield for the first time since the Great Recession. Monday has seen reassuring news on several fronts but not before share prices in the Pacific Rim tumbled 3.0% in Japan, 2.3% in […] More

U.S. Trade Deficit Catapults Higher Despite Tariff Policy

March 6, 2019

The U.S. goods and services trade deficit soared to a 122-month high in December of $59.8 billion. That was 18.8% greater than November’s deficit and embodied an $81.5 billion deficit from traded goods. The 2018 goods and services trade deficit equaled $621.0 billion, compared to $552.3 billion in 2017 and $502.0 billion in the last […] More

Central Bank Rates in Turkey, Indonesia and South Africa Left Unchanged

January 17, 2019

The weaker global inflationary outlook has reduced lessened the risk of imported inflation and capital outflows that might caused by tighter monetary policy in the United States and other industrialized economies. The last central bank interest rate changes in Turkey, Indonesia, and South Africa had been upward, but officials at all of them held policy […] More

Central Reserve Bank of the Republic of Turkey

September 13, 2018

As telegraphed earlier this month, Turkish monetary authorities tightened monetary policy today in response to the continuing vicious cycle of lira depreciation, which had exceeded 50% year-to-date, and price inflation. They raised the one-week repo rate to 24.0% from 17.75%, exceeded street expectations. This was the fourth increase of 2018 after hikes of 125 basis […] More

No Turkish Interest Rate Hike This Month

July 24, 2018

Amid a vicious circle of currency depreciation and accelerating inflation, policymakers at the Central Bank of Turkey had hiked their benchmark interest rate by 75 basis points in April, 300 bps at an unscheduled conference on May 24, and 125 bps on June 7. This restraint had slowed but not halted market trends. Inflation rose […] More

Turkish Monetary Policy Tightened Significantly Further

June 7, 2018

With PPI inflation over 20% and CPI inflation above 12%, monetary officials raised Turkey’s one-week repo rate by an additional 125 basis points to 17.75%, bringing the increase of that newly designated main policy rate to 9.75 percentage points in the past ten days. In a statement from the Monetary Policy Committee of the Central […] More