Central Bank of the Republic of Turkey

Central Bank of Turkey Tightens Sharply

November 19, 2020

The Central Bank of Turkey¬†raised the one-week repo rate by 475 basis points to 15.0% in an action to counter inflation caused by the depreciation of the lira. Among emerging market economies, Turkey’s currency this year has been the weakest. Turkish monetary officials, like their counterparts around the world, had lowered their interest rate progressively […] More

Central Bank Rate Reduction in Turkey

February 19, 2020

The Central Bank of Turkey engineered its sixth and most “measured” cut of the one-week repo rate of an easing cycle that began last July. From August 2018 until then, the rate had been kept at a stratospheric 24%, and 13.25 percentage points above the new rate level of 10.75%, which happens to be represent […] More

Risk Preference Restored to Some Extent

February 19, 2020

EUR/USD is unchanged from yesterday’s closing level. The dollar is also flat against the yuan and kiwi, up most strongly versus the yen (0.8%) and then 0.3% relative to sterling. To the surprise of few, Prime Minister Boris Johnson is not proving to be as adept at governance as he was at running for election. […] More

Interest Rate Cut in Turkey

January 16, 2020

The Central Bank of the Republic of Turkey’s one-week repo rate was cut by 75 basis points to 11.25%. Analysts had been projecting a likely 50-bp cut. Today’s moves follow consecutive cuts of 425 basis points last July, 325 bps at September’s meeting, 250 bps in October and 200 bps last month. Even though the […] More

Financial Markets Comparatively Steady after Signing of Phase I U.S.-China Trade Deal

January 16, 2020

The dollar rose 0.1% overnight against the yen but slipped by 0.3% versus sterling and the Australian dollar, 0.2% relative to the Chinese Renminbi and Swiss franc, and 0.1% versus the euro and loonie. Share prices in the Pacific Rim advanced 0.7% in Australia, New Zealand and Singapore, 0.8% in South Korea, 0.1% in Japan, […] More

Turkish Monetary Policy Eased Further

December 12, 2019

The Central Bank of the Republic¬† of Turkey reduced its key interest rate to 12% from 14% today, citing weak domestic investment demand, a weakening global economic outlook, significant improvement in the current account, a stable lira that has enabled Turkish inflation to recede, a widespread drop in expected inflation, and low global price pressures. […] More

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

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