Central Bank of the Republic of Turkey
A Turkish Central Bank Rate Cut and a Norwegian Rate Increase on the Same Day
December 16, 2021
Thursday’s central bank action illustrated the broadening diversity of monetary policies around the world amid rising inflation but also persistent uncertainty related to the coronavirus pandemic. The Turkish lira got clobbered, slumping more than 5.0% further after the Central Bank of the Republic of Turkey reduced the one-week repo rate by another 100 basis point […] More
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
