The developments in foreign exchange (FX) rates reflected on the increase in many items of inflation, while producer prices driven pressures were strongly felt as a result of TRY’s devaluation, according to the Central Bank’s price developments report about the outlook of inflation, which hit a 19-year high at 36.08% in December. The bank said...
Tag: Central Bank of the Republic of Turkey
Post
Post
Central Bank eyes 5% inflation with ease in monetary policy
The Central Bank (CBRT) remained the inflation target at 5% in the Monetary and Exchange Rate Policy Report for 2022. The bank will work to strengthen its reserves in line with the report, which didn’t include statements about the tight monetary policy. Although the financial stability was emphasized in the report, statements about the tight...
Post
Foreign currency protected TRY deposit account term kicks off
Ministry of Treasury and Finance revealed the details of the ‘Foreign Currency Protected TRY Deposit Account’ as part of the new economic regulation announced by President Recep Tayyip Erdogan after the cabinet meeting yesterday. Accordingly, a new product was put into use so that citizens who use their savings as TRY deposits do not...
Post
Private sector’s external debt down in October
The private sector’s outstanding foreign loans in October totaled USD 169.8bn, down by USD 3.1bn compared to the end of 2020, according to the Central Bank The short-term loans – excluding trade credits – of the sector received from abroad were USD 8.4bn as of October, down by USD 1.3bn from the end of last...
Post
Central Bank cuts interest rate by another 100 basis points
The Central Bank of the Republic of Turkey (CBRT) cut the interest rate to 14% in line with the market expectations. Noting that the cumulative effects will be closely monitored in the first quarter of the coming year, the CBRT pointed out that a comprehensive policy framework review process will be carried out in this...
Post
I won’t stand by anyone who defends interest rates: Erdogan
Turkish President and AK Party Chairman Recep Tayyip Erdogan has underlined the ‘low interest rate’ message at the AK Party’s group meeting . Repeating the idea that the ‘interest is the cause and inflation is the result’, Erdogan said his party will remove the burden of the interest rate burden from the nation. “We cannot let...
Post
TRY Rout Imperils One of the Best Bets in Emerging Markets
BY BLOOMBERG The TRY’s slump this month threatens to derail a rally in Turkish corporate bonds that’s handed investors some of the richest returns in emerging markets. The debt, offering returns of 4.4% in 2021, was the second-worst performer in developing nations after President Recep Tayyip Erdogan sacked three central bankers last week. As TRY tumbled, the...
Post
Turkey’s Rate Cut Could Undermine Modest External Improvement: Fitch
The Central Bank’s 100 basis point rate cut and change in policy guidance will increase the challenge of bringing inflation under control and highlights the weak credibility of monetary policy, according to the international credit rating agency Fitch Ratings. “The decision also risks undermining the recent partial recovery of the country’s international reserve position,” Fitch...