Central Bank of Turkey Raises Another 250 bps to 45%, Signaled End of Rate Hikes

The Central Bank of Turkey hiked by another 250bps from 42.5 percent to 45 percent as expected. It also signaled the end of rate hikes by stating “that the monetary tightness required to establish the disinflation course is achieved and that this level will be maintained as long as needed.” This was consistent with expectations this would be the final hike after the central bank said at its last decision in December that the goal was to “complete the tightening … Continue reading “Central Bank of Turkey Raises Another 250 bps to 45%, Signaled End of Rate Hikes”

Central Bank of Turkey Raises Rates By 250 bps to 42.50%, Up 35% since May

The Central Bank of Turkey hiked rates by another 250bps from 40 percent to 42.5 percent at its December meeting. The bank said headline inflation edged up in November and remains in line with the outlook presented in the most recent Inflation Report. The existing level of domestic demand, stickiness in services inflation, and geopolitical risks keep inflation pressures alive. The move follows a hike of 500bps at its November meeting. The move was its seventh big interest rate hike … Continue reading “Central Bank of Turkey Raises Rates By 250 bps to 42.50%, Up 35% since May”

Central Bank of Turkey Raises Rates By 500 bps to 40% with Inflation Stuck at Over 60%

The Central Bank of Turkey hiked by another 500bps, double the consensus, to a new one-week repo rate of 40% at its November meeting. The move was its sixth big interest rate hike in a row as inflation hit 61.36% last month. The weak lira responded minimally, gaining a little but underperforming against most EM crosses and several major ones. The currency response had much to do with the central bank indicating it would keep tightening but at a slower … Continue reading “Central Bank of Turkey Raises Rates By 500 bps to 40% with Inflation Stuck at Over 60%”

Central Bank of Turkey Raises Rates By 500 bps to 30%, Lira Continues to Weaken

The Central Bank of Turkey hiked by 500bps to 30% at its September meeting. It has been raised by 22.5% since May. The lira was weaker in response and has been selling off throughout the hiking campaign. Turkey remains in the clutches of a currency crisis after President Erdogan destroyed its credibility. The central bank said it was prepared to take further aggressive action on interest rates, with the CPI annual rate 59% in August. “Monetary tightening will be further … Continue reading “Central Bank of Turkey Raises Rates By 500 bps to 30%, Lira Continues to Weaken”

Central Bank of Turkey Raises Rates By 250 bps to 17.5%, Another All Time Low for Lira

The Central Bank of Turkey hiked by 250 bps to 17.5 percent at its June 2023 meeting. It followed 650bps to 15% at its June 2023 meeting, the consensus guess was 20%. Inflation fell to 38.21% in June but expected to go as high as 60% with the ever-collapsing Lire. The lira touched a fresh record low, another 2.6% lower to 24.20 after. The lira tumbled to record lows again, falling about half a percentage point against the dollar on the … Continue reading “Central Bank of Turkey Raises Rates By 250 bps to 17.5%, Another All Time Low for Lira”

Central Bank of Turkey Raises Rates First Time in Two Years, By 650 bps to 15.0%, Lira Collapses

The Central Bank of Turkey hiked by 650bps to 15% for the 7-day repo rate at its June 2023 meeting, the consensus guess was 20%, with one call calling for to 40%. The lira touched a fresh record low, another 2.6% lower to 24.20 after. The move came after holding steady for a third straight month following a 50-bps cut previously in response to the country’s earthquake disaster. The lira tumbled to record lows again. We now have President Tayyip … Continue reading “Central Bank of Turkey Raises Rates First Time in Two Years, By 650 bps to 15.0%, Lira Collapses”

Ahead of Election Runoff Turkey Central Bank Leaves Rates at 8.5% as Lira Hits New Lows

The Central Bank of Turkey held its key one-week repo rate at 8.5% in its May 2023 meeting, as expected. Holding steady for a third straight month following a 50-bps cut previously in response to the country’s earthquake disaster. The lira has tumbled to record lows after President Tayyip Erdogan’s solid lead in the May 14 election became clear and Turkey’s sovereign dollar bonds and equities have plunged, while the cost of insuring exposure (CDS) to Turkish debt has spiked. … Continue reading “Ahead of Election Runoff Turkey Central Bank Leaves Rates at 8.5% as Lira Hits New Lows”

Turkey Central Bank Leaves Rates Unchanged as Lira Hits New Lows

The Central Bank of Turkey held its key one-week repo rate at 8.5% in its March 2023 meeting, as expected following a 50-bps cut in the previous month in response to the country’s earthquake disaster. The Committee assessed that the current monetary policy stance is adequate to support the necessary recovery in the aftermath of the earthquake by maintaining price stability and financial stability. The Turkish lira held a record low over 19 per USD after the announcement. Since September 2021 … Continue reading “Turkey Central Bank Leaves Rates Unchanged as Lira Hits New Lows”

Turkey Central Bank Cut Interest Rates by 50bps to 8.5% As Lira Hits New Lows

The Central Bank of Turkey cut its key one-week repo rate by 50bps to 8.5% in its February 2023 meeting, interrupting its rate-cut pause on Thursday, as expected.  The move was in response to the country’s earthquake disaster. It was the central bank’s first rate cut since November. The Turkish lira held a record low of 18.8 per USD after the announcement. Since September 2021 there has been concerted pressure from President Recep Tayyip Erdogan wanting rates cut to stimulate … Continue reading “Turkey Central Bank Cut Interest Rates by 50bps to 8.5% As Lira Hits New Lows”

Turkey Central Bank Left Interest Rates Unchanged at 9% As Lira Hits New Lows

The Central Bank of Turkey left its key one-week repo rate unchanged at 9% in its January meeting on Thursday, as expected, saying the current policy rate is adequate.  The bank had cut key interest rates in November for the fourth consecutive month. The Turkish lira held a record low of 18.8 per USD after the announcement. There has been concerted pressure from President Recep Tayyip Erdogan wanting rates cut to stimulate the economy, but the collapsed Lira and soaring … Continue reading “Turkey Central Bank Left Interest Rates Unchanged at 9% As Lira Hits New Lows”