Central Bank of Turkey

Two Percentage Point Central Bank Rate Hike in Turkey

March 18, 2021

One currency to buck the downward trend of most currencies versus the dollar has been the Turkish lira, which has rebounded about 2% in response to a greater-than-expected 200 basis point increase in the Central Bank of Turkey’s one-week repo rate. Turkish CPI inflation has climbed to 15.6%. At 19%, the central bank interest rate […] More

U.S. Treasury Yield Climbs Sharply in Spite of Fed’s Message and Lifts Dollar

March 18, 2021

Markets aren’t buying yesterday’s dovish policy message from the Federal Reserve. The 10-year U.S. Treasury yield roared ten basis points higher overnight to 1.74%, just shy of doubling mid-December’s level. The 10-year British gilt yield rose 6 basis points even though the Bank of England maintained its policy settings, too, and called its current monetary […] More

Turkish Tight Monetary Policy Maintained

February 18, 2021

Priorities are different at the Central Bank of Turkey, whose economy is again experiencing a vicious cycle of accelerating inflation and lira depreciation. Inflation expectations are higher, fed additionally by elevated food prices. From January to May of 2020, officials cut their one-week repo rate five times by a total of 375 basis points, only […] More

Stocks and Dollar Falter as Sovereign Debt Yields Resume Their Rise

February 18, 2021

Overnight dollar losses range from 0.7% against sterling to 0.4% relative to the Aussie and New Zealand dollars, 0.3% versus the euro, Swiss franc and peso and 0.2% relative to the yen and loonie. The trade-weighted dollar is 0.3% softer. Ten-year sovereign debt yields are up four basis points in the U.K., lifting the pound […] More

Slew of U.S. Executive Orders and Central Bank Policy Reviews

January 21, 2021

President Biden’s inaugural address yesterday called for national unity to face down the many severe challenges now juxtaposed. 17 executive orders followed to reverse several polices of the Trump era. Contrary to warnings, inauguration day was free of domestic violence. U.S. stocks experienced their greatest advance on a presidential inauguration day since 1985, when Reagan […] More

Central Bank of Turkey’s Repo Rate Lifted Another 200 Basis Points

December 24, 2020

2020 was a very active year for Turkish monetary policy. Five repo rate reductions in January-May totaled 375 basis points but were followed by sharp hikes of 200 basis points in both September and today, flanked around a huge 475-basis point increase in November. The rate benchmark is ending the year at 17% compared to […] More

Some Important Developments this Christmas Eve

December 24, 2020

Many markets were either shut all day or closed early. Nevertheless, investors are digesting some significant developments: The Central Bank of Turkey hiked its one-week repo rate by a greater-than-expected two percentage points to 17%. The rate was 12% at the start of 2020 and 8.25% in June-August. EU/British trade negotiators reached a tentative accord, […] More

Central Banks of Turkey, Ukraine, and Israel Review Monetary Policies

October 22, 2020

Instead of a follow-through measure after last month’s two percentage point rate hike, officials at the Central Bank of Turkey surprised analysts by keeping their one-week repo rate unchanged at 10.25%. Many had been expected the rate to return to its end-2019 level of 12%. The rate initially this year had been slashed by 75 […] More

Two Percentage Point Interest Rate Hike in Turkey

September 24, 2020

Officials at the Central Bank of Turkey made the biggest splash, hiking the one-week repo rate by two full percentage points to 10.25%, which reverses over half of the 375 basis points of reduction engineered earlier this year between January and May. This directional reversal was ostensibly done in light of this quarter’s “markedly” recovering […] More

Nine-Week High in Trade-Weighted Dollar Despite Adverse U.S. News

September 24, 2020

The dollar rose overnight to a nine-week trade-weighted high of 94.55. The U.S. currency touched a three-month high of NOK 9.5974 against the Norwegian krone, two-month highs of 1.1633 per euro and CHF 0.9269, and 1-month highs of $0.6516 against the New Zealand dollar and ZAR 17.2230 versus the South African rand. Gold, which tends […] More

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