Central Bank of Turkey

Turkey’s Fifth Interest Rate Cut of 2020

May 21, 2020

The Central Bank of Turkey‘s one-week repo rate was cut 50 basis points further to 8.25% today in a move that had been expected and that brings the total decline so far this year to 375 basis points. The new rate level of 8.25% compares to an end-2019 level of 12.0%. Officials released a statement […] More

More Macroeconomic Relief around the World

April 22, 2020

The U.S. Congress approved a fourth fiscal package that’s just a tad short of $500 billion. South Africa unveiled $26 billion of fiscal support, which is equal to about a tenth of GDP. The Bank of Mexico Governing Board held an unscheduled meeting, cutting its policy rate for the third time this year. Along with […] More

Central Bank of Turkey Keeps Existing Tight Stance

June 12, 2019

Turkish inflation has eased to a 9-month low of 18.7%, down from 19.1% in April and a peak of 25.2% last October. The economy is rotating away from overheated domestic demand and toward externally-driven growth, but these desired developments have not progressed far enough to persuade officials to take their foot off the monetary brakes […] More

Stronger Dollar, Weaker Stocks, and Four Central Bank Meetings

April 25, 2019

The dollar advanced overnight by 0.4% against the yuan and peso, 0.3% relative to the euro, 0.2% versus the Swiss franc, sterling and Australian dollar, and 0.1% vis-a-vis the loonie. One currency against which the dollar fell was the yen, which climbed 0.3%. Share prices dived 2.4% in China to a 3-week low on continuing […] More

Thursday’s Menu: Central Bank Decisions, Price Data, Hurricane Florence, and a U.S. Offer for a New Round of High Level Trade Talks with China

September 13, 2018

The Central Bank of the Republic of Turkey lifted its key 0ne-week repo rate by a greater-than-expected 625 basis points to 24.0%. The dollar lost 2.8% against the lira afterward and has also fallen 1.0% against the Russian ruble, 1.6% relative to the South African rand, and 0.6% versus the Mexican peso. The Bank of […] More

Deepening Turkish Crisis Kindles Contagion Fears

August 13, 2018

The dollar has appreciated another 8.7% against the Turkish lira and is hovering around 7/USD. The lira touched a record low of 7.2 per dollar earlier. Turkish share prices have fallen 4.7%, and the 10-year Turkish sovereign debt yields climbed 51 basis points to 21.18%. Turkey’s central bank pumped fresh liquidity into money market by […] More

Central Bank of the Republic of Turkey: No Further Interest Rate Hike Now

March 18, 2014

Excessive inflation, fed in part by selling pressure on the lira, a big current account deficit, and lessening investor ease with emerging market investments prompted a “strong and front-loaded monetary tightening” in late January that saw hikes of 425 basis points in Turkey’s overnight lending rate, 450 bps in the overnight borrowing rate, and 550 […] More

Sharp Response from Turkey’s Central Bank Lifts Lira

January 29, 2014

After a late-night emergency monetary policy meeting in Turkey, the overnight borrowing and lending rates were raised by 450 and 425 basis points, respectively, to 8.0% and 12.0%, while the one-week repo rate increased by 550 bps to 10.0%.  These changes far eclipsed even the boldest forecasts and initially at least boosted the Turkish lira […] More

Central Bank of the Republic of Turkey: Different Measures for Different Needs

May 16, 2013

Amid slack economic growth and inasmuch as CPI inflation had declined to 6.1% in April from 7.3% in March and 7.0% in February, Turkish monetary officials reduced the one-week repo rate to 4.5% from 5.0%, which matches the cut in April and exceeds the 25-bp move that analysts were anticipating.  Because officials also fear that […] More

Monetary Policy Tweaked by the Central Bank of the Republic of Turkey

September 18, 2012

Monetary officials cut the overnight lending rate to 10.0% from 11.5%, while keeping the overnight borrowing rate unchanged at 5.0%.  A statement from officials declares that “narrowing the interest rate corridor would support financial stability,” then adding that “if deemed necessary, a measured step in the same direction may be taken in the forthcoming period.”  […] More

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