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”
Philippines Central Bank Raised Rates by 25 basis points to 6.25%, Highest Since May 2007
The Monetary Board of the Bangko Sentral ng Pilipinas (BSP), Philippines central bank hiked by 25 basis points to 6.25%. Rates are now the highest since the 7.50 percent logged in May 2007. Since it started raising interest rates in May last year, the BSP has so far increased key policy rates by 425 basis points (bps), making it the most aggressive central bank in the region. BSP joined the Federal Reserve and the Hong Kong’s monetary authority in raising … Continue reading “Philippines Central Bank Raised Rates by 25 basis points to 6.25%, Highest Since May 2007”
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”
Turkey Central Bank Cuts Left Interest Rates Unchanged at 9%, Bond Yield Hits Six Year Low
The Central Bank of Turkey left its key one-week repo rate unchanged at 9% in its December 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. There is concerted pressure from President Recep Tayyip Erdogan wanting rates cut to stimulate the economy but the collapsed Lira and soaring inflation perhaps enabled reason to take hold. The TCMB had signaled it will end the … Continue reading “Turkey Central Bank Cuts Left Interest Rates Unchanged at 9%, Bond Yield Hits Six Year Low”
Philippines Central Bank Raised Rates by 50 basis points to 5.50% with Inflation at 14 Year Highs
The Monetary Board of the Bangko Sentral ng Pilipinas (BSP), Philippines central bank hiked by 50 basis points to 5.50% and follows a 75 basis-point increase at the last meeting. It was the seventh consecutive rate hike, pushing borrowing costs to a new high since early-2009. BSP joined the Federal Reserve and the Hong Kong’s monetary authority in raising its base rate to combat inflation. Later the same day, Taiwan’s central bank announced a 12.5-basis-point increase to 1.75%, The Philippine … Continue reading “Philippines Central Bank Raised Rates by 50 basis points to 5.50% with Inflation at 14 Year Highs”
Turkey Central Bank Cuts Interest Rates Another 150bp Ending Easing Cycle
The Central Bank of Turkey cut its interest rate by 150bps to 9.00% at its November 2022 meeting on Thursday. The bank cut key interest rates for the fourth consecutive month. The move was as expected. There is concerted pressure from President Recep Tayyip Erdogan wanting rates cut to stimulate the economy. This is despite the lira’s collapse, soaring consumer prices, and an unbalanced current account. The TCMB signaled it will end the rate-cutting cycle. Turkey’s currency, the lira remained … Continue reading “Turkey Central Bank Cuts Interest Rates Another 150bp Ending Easing Cycle”
Emerging Markets Facing Highest Currency Crisis Risk Since 1999
This year we have seen a run-on EM market which is unleashing a dangerous dynamic. We have seen EM systems facing global de-risking/deleveraging without a clear Fed and central banking community “put.” Nomura has warned 22 of the 32 countries covered by its in-house “Damocles” warning system have seen their risk rise since its last update since May to the most vulnerable since July 1999 and near the peak at “the height of the Asian crisis”. Seven countries, Egypt, Romania, Sri … Continue reading “Emerging Markets Facing Highest Currency Crisis Risk Since 1999”
Turkey Central Bank Shocks with 150bp Cut Accelerating Turkish Lira Free Fall
The Central Bank of Turkey unexpectedly cut its interest rate by 150bps to 10.50% at its October 2022 meeting on Thursday. The bank cut key interest rates for the third consecutive month. There is concerted pressure from President Recep Tayyip Erdogan wanting rates cut to stimulate the economy. The move surprised markets that expected a 100bps cut. The TCMB signaled it will take the same step in the next meeting to end the rate-cutting cycle. Turkey’s currency, the lira collapse … Continue reading “Turkey Central Bank Shocks with 150bp Cut Accelerating Turkish Lira Free Fall”