Central Bank of Turkey
Central Bank Rate Changes in Sweden, Norway, Turkey and Brazil
September 22, 2023
The Swedish Riksbank‘s executive board engineered a 25-basis point interest rate hike to 4.0% today, claiming that “inflationary pressures in the Swedish economy are still too high.” That compares with a zero percent rate at the start of the second quarter of 2022 and -0.50% in November 2018. Swedish inflation of 7.5% is far […] More
Turkish Interest Rate Lifted to 25%
August 24, 2023
The Central Bank of Turkey’s key interest rate was raised to 25.0% from 17.5%. This biggest move so far followed increases of 250 basis points in July and 650 bps in June and catapults the rate well beyond the prior peak of 19.0% for five months from March 2021 to August 2021. The size of […] More
Mega-Hike in Turkish Central Bank Rate and a Republican Presidential Debate that Changes Little
August 24, 2023
The Central Bank of Turkey’s key interest rate was raised to 25.0% from 17.5%. This biggest move so far followed increases of 250 basis points in July and 650 bps in June and catapults the rate well beyond the prior peak of 19.0% for five months from March 2021 to August 2021. The size of […] More
Central Bank of Turkey’s Interest Rate Increased by 250 Basis Points but Still Far Below Inflation
July 20, 2023
The Central Bank of Turkey only lifted the one-week repo rate half as much as forecast. A 250-basis point hike following a 650-basis point increase at the prior June meeting nonetheless puts the rate at 17.0%, which its highest level since 18% in September 2021. The first rate change in 2023 had been a 50-basis […] More
Weighted DXY Dollar Index Climbs Back Above 100 Level
July 20, 2023
Against specific other currencies, the dollar recovered overnight by 0.5% against sterling,0.4% vis-a-vis the Swiss franc, 0.3% versus the Mexican peso, 0.2% relative to the euro and yen, and 0.1% against the loonie and kiwi. A six-basis point rise in the 10-year U.S. Treasury yield eclipsed today’s one-basis point increases in the comparable German bund […] More
Central Bank of Turkey
June 22, 2023
One of the most bizarre monetary policies in recent years has involved the Central Bank of Turkey. In spite of very elevated inflation, Turkey’s one-week repo rate had been cut from 19% in 2021 to 8.5% after a 50-basis point reduction this past February. Sharply easier monetary policy had fanned a vicious cycle of currency […] More
German Recession Confirmed and Interest Rate Decisions in South Korea, Turkey and Indonesia
May 25, 2023
U.S. GDP data will be released shortly. In the meantime, German GDP growth last quarter was revised to -0.3% (not annualized) from zero percent reported originally. That’s the second negative quarter in a row and the third drop in the past four quarter, resulting in a negative year-on-year growth rate of -0.5% as well. The […] More
Turkish Central Bank Rate Cut
February 23, 2023
The Central Bank of Turkey‘s policy interest rate has swung widely since 2019. In 2020 when the pandemic first hit, the rate was initially cut by a total 375 basis points to 8.25% in January-May but then hiked 1,075 basis points to 19.0% by March 2021. Later that year, the rate was slashed 500 basis […] More
Reacting to FOMC Minutes and Awaiting More U.S. Data Reports
February 23, 2023
FOMC minutes published Wednesday afternoon confirmed that some policymakers at the Fed leaned toward a 50-basis point hike rather than the 25-bp increase agreed upon. Consideration of a pause in tightening was off the table, and there was widespread consent that more rate hikes will be necessary. Investors now await revised 4Q U.S. GDP figures, […] More
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
