Central Bank of the Republic of Turkey
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
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 of the Republic of Turkey
April 25, 2018
Turkish monetary policy was tightened slightly at the latest review. Most of the central bank’s interest rates — an 8.0% one-week repo, a 7.25% marginal borrowing rate, a 9.25% overnight marginal funding rate, and a rate of zero percent for the late liquidity window borrowing rate — were not changed. But a released statement announced a […] More
Dollar Broadly Stronger… Gold and Global Bonds Down
April 25, 2018
The Mexican peso extended its recent swoon, falling 1.0% against the dollar and moving past the 19 per USD threshold. U.S./Mexican relations appear headed for another dive, as Lopez Obrador, the former Mexico City mayor and a populist, retained a huge lead in presidential election polls. The election is just over two months away. It’s […] More
