Central Bank of Turkey

Central Bank Authorities in Norway and Turkey Hold Their Fire

January 19, 2023

Norway’s policy rate was cut from 1.5% to 0% in the early months of the pandemic and not increased until September. Another hike of 25 bps to 0.5% followed in December 2021 and six more totaling 225 basis points to 2.75% followed in 2022, including a 25-bp increase last month. Officials didn’t hike further at […] More

Contrasting Concerns Among Central Bankers and Financial Market Investors

January 19, 2023

As often is the case, the World Economic Forum in Davos has thrust central bank policies into the spotlight. The primary concern of monetary policymakers remains inflation. Federal Reserve District Presidents Mester of Cleveland and Bullard of St. Louis endorsed a need to crank the federal funds rate target above 5.0%. European Central Bank President […] More

Turkey and Indonesia

December 22, 2022

The Central Bank of Turkey did not cut its one-week 9.0% repo rate further at this month’s review, adhering to the pause that was  signaled earlier. The key interest rate had been slashed by a combined 500 basis points at the four previous monthly meetings on top of of 500 basis points of reduction in […] More

Several Central Bank Policy Meetings Elsewhere on This U.S. Thanksgiving Day

November 24, 2022

With the U.S. observing its quintessentially most unique holiday, the dollar continued to back off from recent highs, dropping 0.3% on a weighted DXY basis  overnight and extending its cumulative decline from peak to 7.8%. The dollar lost 0.9% against the yen today and 0.6% versus sterling but just 0.1% relative to the euro. Prices […] More

Turkish Central Bank Rate Cut

October 20, 2022

A bizarre tinge to this Thursday had been injected earlier by the Central Bank of Turkey whose officials slashed its one-week repo rate by 150 basis points to 10.5%. Seven reductions beginning in September 2021 add up to 850 basis points from a then-peak of 19.0%. Turkey’s easing monetary policy cuts against the global grain, […] More

Unusual Developments

October 20, 2022

British Prime Minister Truss just announced her resignation after an unusually brief six weeks in office. Having campaigned as the second coming of Margaret Thatcher, Truss lost the the confidence of her own party when a public roar of protest greeted her program of radical and unfunded tax cuts. Her departure is unlikely to quell […] More

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