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%”

Philippines Central Bank Surprised Raising Rates to 6.50% in Emergency Meeting, Warns of Future Hikes

The Monetary Board of the Bangko Sentral ng Pilipinas (BSP), Philippines central bank raised its benchmark interest rate by 25 basis points and hinted at further hikes to contain surging inflation following an emergency meeting on Thursday, lifting the key rate to 6.5%. The move came after inflation accelerated to 6.1% year-on-year in September as food prices rose. It is the highest since the 7.50 percent logged in May 2007. Since it started raising interest rates in May last year, … Continue reading “Philippines Central Bank Surprised Raising Rates to 6.50% in Emergency Meeting, Warns of Future Hikes”

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”

Philippines Central Bank Held Rates at 6.25% with Stable Peso and Downward Inflation Trend

The Monetary Board of the Bangko Sentral ng Pilipinas (BSP), Philippines central bank held rates at 6.25%. Rates at their August meeting, 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 Governor Eli Remolona Jr. said “monetary authorities are ready to respond as necessary … Continue reading “Philippines Central Bank Held Rates at 6.25% with Stable Peso and Downward Inflation Trend”

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”

Philippines Central Bank Held Rates at 6.25%, Highest Since May 2007 as Inflation Moderates

The Monetary Board of the Bangko Sentral ng Pilipinas (BSP), Philippines central bank held rates at 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. Governor Felipe Medalla said “I would like to see two months of below 4% inflation before … Continue reading “Philippines Central Bank Held Rates at 6.25%, Highest Since May 2007 as Inflation Moderates”

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”