Turkey
Lessening Urgency to Tighten Turkish Interest Rates
July 15, 2010
A new statement from the Central Bank of the Republic of Turkey kept the mantra that current policy interest rate levels can be maintained for “some time” and that low levels are probable for “a long time.” The new benchmark one-week repo rate thus stays at 7.0%, and the old target instrument, the overnight borrowing [...] More
Turkish Monetary Policy Unchanged
June 17, 2010
The one-week repo rate of the Central Bank of the Republic of Turkey was held at 7.0% as expected, and a statement from the monetary authorities had a somewhat dovish tone. It reiterates that present policy may be retained “for some time” and low rates could be maintained “for a long period of time.” Until [...] More
Results of Turkey’s Central Bank Meeting
May 18, 2010
The Central Bank of the Republic of Turkey switched its operative interest rate to the 7-day repo rate, which remains at 7.0%, and left all other interest rates including the 6.5% overnight borrowing rate, which used to be the targeted rate, unchanged as well. This is a preannounced preparatory step to enable officials to gradually [...] More
Turkish Central Bank Prepares For Exit Strategy in Tiny Steps
April 14, 2010
The Central Bank of the Republic of Turkey had a target overnight borrowing rate of 16.75% as late as October 2008. Thirteen consecutive monthly reductions later, it was 1025 basis points lower at 6.5%. The final cut of 25 bps was implemented last November. After yesterday’s monthly April meeting, monetary officials as expected kept the [...] More
Turkey’s Dovish Monetary Policy Bias Starts to Waver
March 18, 2010
Turkey experienced one of the world’s sharpest drop in central bank interest rates. For 13 consecutive meetings starting with a 50-basis point reduction in November 2008 and ending with a 25-bp cut in November 2009, the overnight borrowing rate was slashed from 16.75% to 6.5%, and officials have affirmed in each of the ensuing four [...] More
Sharply Higher Yen
February 25, 2010
Uneasiness about Europe sent the yen and dollar higher. The yen gained 0.9% against the dollar and hit a one-year high against the euro of 120.20. At the new peak, the yen is 41.4% higher relative to the euro than when it stood at 170 per euro on July 23, 2008. The dollar has risen [...] More
Turkish Monetary Policy On Hold for "a Long Period of Time"
February 16, 2010
The Central Bank of the Republic of Turkey left its key borrowing and lending rates at 6.5% and 9.0%, respectively. Those levels were reached after a 25-bp rate cut last November. Previously, the borrowing rate was slashed from a peak of 16.75% prior to November 2008, dropping by 50 basis points that month, 125 bps [...] More
Turkish Central Bank Rates to Stay Low For A Long Period of Time
January 14, 2010
After keeping the key overnight borrowing rate and lending rate at 6.5% and 9.0%, respectively, the Central Bank of the Republic of Turkey released a statement that predicted these “low” rates would be retained for “a long period of time.” A recent acceleration of inflation to an on-year 6.5% in December was blamed on base [...] More
