Turkey

Turkish Central Bank 7.0% One-Week Repo Rate Retained as Forecast

October 14, 2010

The interest rate structure at the Central Bank of the Republic of Turkey was reached in November 2009 after 1025 basis points of cuts during the preceding year.  Officials today decided not to raise the 7.0% 1-week repo rate or any of the other key rates it uses.  The decision was as expected and explained […] More

Turkish Monetary Policy Again Left Unchanged

September 16, 2010

As expected, the one-week repo rate at the Central Bank of the Republic of Turkey was kept at 7.0%, and a statement from officials once more kept to the mantra that they expect “to keep rates at present levels for some time longer and at low levels for a long time.”  It wasn’t that way […] More

Turkish Monetary Policy Left Unchanged

August 24, 2010

After meeting on August 19, officials at the Central Bank of the Republic of Turkey kept the one-week repo rate steady at 7.0%, reiterated that it would be necessary to maintain policy rates at current levels for some time and to keep them at low levels for a long period, and released a a statement […] More

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

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