Central Bank of Turkey

Down the Rabbit Hole of Turkish Monetary Policy

September 22, 2022

While most countries seems to be running away from inflation, Turkey seemingly is taking steps to bring it on. Turkish CPI inflation has accelerated to 80.2% versus a target of 5%, and the lira had collapsed 45% since September 2021. From 19%, the rate was lowered to 14.0% in the final four months of 2021, […] More

Thursday Central Bank Derby Results in Japanese Forex Intervention, Many Interest Rate Hikes, and One Bizarre Cut

September 22, 2022

Net overnight movements in the dollar have ranged widely from a 1.8% plunge against the yen to a 1.1% rise versus the Swiss franc. In between, the dollar fell 0.3% versus the euro, Australian dollar, and sterling. After numerous rhetorical complaints by officials about the weakness of the yen, Japanese officials sold foreign currency directly […] More

Central Bank of Turkey’s Policy Interest Rate Cut to 13% from 14%

August 18, 2022

Turkey has one of the world’s highest inflation rates. Consumer prices rose 79.6% in the twelve months through July, up from inflation of 19% a year earlier and 11.8% in the year ending July 2020. Turkey also has an autocratic leader, who believes that raising interest rates is a cause of inflation, not a solution […] More

Slackening Demand and Confidence But Persistently Red-Hot Inflation as Several Central Banks Unveil Latest Policy Decisions

July 21, 2022

The dollar was already lower when the European Central Bank announced a more aggressive rate hike than implied in previous forward guidance. That move pushed the dollar down further such that it currently shows net overnight drops of 0.9% against the euro and 0.6% against the DXY weighted index. By comparison, the dollar is little […] More

Emerging Evidence of A More Pressing Recessionary Risk in Europe than the United States

June 23, 2022

Preliminary June purchasing manager survey results highlight scant demand, a rise in unsold inventories,  a mounting drag from elevated inflation, and weakening trends in both business and consumer confidence. The findings contrast with Fed Chairman Powell assertion yesterday that, while the U.S. situation presents a challenging one to policymakers, the risk of a near-term recession […] More

Thursday’s Focus Turns to Central Banks

May 26, 2022

The dollar slid overnight by 0.2% against the euro, yen, sterling, and Mexican peso and by 0.1% versus the Swiss franc and on a weighted basis. Alternatively the U.S. currency advanced 0.6% relative to the Chinese yuan, 0.3% relative to the Russian ruble, and 0.2% vis-a-vis the Turkish lira. The kiwi, Aussie dollar and Canadian […] More

Amid Rising Inflation, Some Central Banks React and Others Do Not

April 14, 2022

The weighted DXY dollar index slid 0.3% so far today and is 0.9% below its year-to-date high hit in intraday trading yesterday. Losses of 0.2-0.3% today have occurred against the euro, yen, kiwi, loonie and sterling, while marginal upticks have occurred versus the Swiss franc and Australian dollar. Stock markets closed up 1.2% in Japan […] More

Inflation and Russian Invasion of Ukraine Casting Longer Shadows

March 17, 2022

Equities behaved in a widely diverse way overnight after the Fed enacted the first of many rate hikes. Share prices closed up by 7.0% in Hong Kong, 3.5% in Japan, 3.0% in Taiwan, 1.8% in India, 1.7% in China, and 1.1% in Australia. But stock markets so far are down this Thursday by 1.0% in […] More

Reacting to Diverse Monetary Stances, Newly Heightened Ukraine-Russian Tensions, and Possible Enhanced World Oil Supplies

February 17, 2022

The dollar fell overnight by 0.4% against the yen and kiwi, 0.3% relative to the yuan, and 0.1% versus the Swiss franc. The dollar also advanced 1.7% against the Turkish lira, 0.2% vis-a-vis the Mexican peso, and 0.1% against the euro and Canadian dollar. U.S. equity futures point to a lower open. Equities closed 0.8% […] More

Dollar Little Changed on Day that Saw Many Central Bank Meetings and Thick Menu of Released Data

January 20, 2022

The weighted dollar edged up by a marginal 0.1% overnight. It gained 0.1% against the euro and Swiss franc but is unchanged against the yen and sterling and down 0.1% versus the Canadian dollar. Stock market action in the Pacific Rim was widely varied, with Japan Nikkei and Hong Kong’s Hang Seng indices closing 1.1% […] More

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