Tag: $USDTRY

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”

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”

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”

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”

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”

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”

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”

The Central Bank of Turkey unexpectedly cut its interest rate by 100bps to 12% at its September 2022 meeting on Thursday bank cut key interest rates for the second consecutive month. There is concerted pressure from President Recep Tayyip Erdogan wanting rates cut to stimulate the economy. The move surprised markets that expected rates to remain steady at 13%. Turkey gave another great lesson on why Central Banks and Governments should be independent. Turkey’s currency, the lira collapse accelerated further … Continue reading “Turkey Central Bank Shocks with Another 100bp Cut Accelerating Turkish Lira Free Fall”