Turkey's central bank hikes key interest rate to 24 percent

14 September, 2018, 04:13 | Author: Mary Valdez
  • Erdogan appoints himself chairman of Turkey's sovereign wealth fund

The monetary policy committee of the bank said the one-week repo rate was being lifted to 24 percent from 17.75 percent, the first rate hike since June.

All 11 economists in a Reuters poll had forecast the bank would tighten, with the predictions ranging between 225-725 basis points as it balances concerns over the lira's weakness with worries about a sharp economic slowdown.

President Recep Tayyip Erdogan on Wednesday appointed himself the chairman of Turkey's sovereign wealth fund and named his son-in-law and Finance Minister Berat Albayrak as deputy chairman.

Aberdeen Standard Investments Head of Emerging Market Debt, Brett Diment, said: "It is pleasing to see common sense prevail".

The next two Monetary Policy Committee meetings are to be held in October.

The bank vowed the tight stance in monetary policy would be "maintained decisively until inflation outlook displays a significant improvement" in the statement.

The central bank said there was still an upside risk to Turkey's inflation outlook from what it called a deterioration in pricing behaviour, despite weaker domestic demand conditions.

"Accordingly, the Committee has made a decision to implement a strong monetary tightening to support price stability", it added, explaining the hike. It later shed some of those gains but was still up 3.0 per cent in value at 6.14 to the dollar.

Rahul Gandhi Owned Kingfisher Airline By Proxy, Claims BJP
Jaitley in a post on Facebook on Wednesday evening wrote: "The statement is factually false in as much as it does not reflect truth".

Philippines braces for most powerful typhoon this year
Floods, landslides and huge waves could put millions at risk as Typhoon Mangkhut hurtles towards the Philippines and Hong Kong. More than three million people live in northern Luzon, which is sparsely populated compared to other parts of the island.

Serena Williams melts down, cartoonist branded racist
Steve Simon , chief executive of the Women's Tennis Association ( WTA ), which runs the women's tour, suggested Williams had been treated unfairly.

The Turkish currency lost almost a quarter in value against the dollar in August.

The main refinancing rate, which determines the cost of credit in the economy, remained unchanged at 0.00 percent while the rate on the marginal lending facility - the emergency overnight borrowing rate for banks - remains at 0.25 percent.

"My sensitivities concerning interest rates are the same, nothing has changed", he said. "The central bank is independent and makes its own decisions".

Phoenix Kalen, director of EM strategy at Societe Generale, said the market was both pleased and confused by the bank move.

"The Governing Council expects the key European Central Bank interest rates to remain at their present levels at least through the summer of 2019, and in any case for as long as necessary", it said, repeating its guidance. "A rate hike would be an important step to restore market confidence in the lira".

That decision sent the lira tumbling by a quarter and prompted Turkish authorities to impose a series of measures meant to support the currency.

Erdogan has cast the lira crisis as an "economic war" targeting Turkey, repeatedly urging Turks to sell their dollar savings to shore up the lira.

He also decreed that local property sales, rental contracts and leasing transactions could no longer be conducted in foreign currency, in a fresh bid to buttress the flagging lira.

Recommended:

  • Real Madrid president not happy with Zidane's intention to manage Manchester United

    Real Madrid president not happy with Zidane's intention to manage Manchester United

    Manchester United , who now sit tenth in the Premier League , return to action on Saturday, September 15 with a trip to Watford. Neville the pundit would say: he's a talented player but I want to see more consistency and leadership.
    Pope Francis Calls Unprecedented Meeting of Top Officials Over Sex Abuse Scandal

    Pope Francis Calls Unprecedented Meeting of Top Officials Over Sex Abuse Scandal

    A shocking Pennsylvania grand jury report detailed over 1,000 instances of sexual abuse by 300 priests and cover-ups by bishops . Pope Francis will meet with USA cardinals and bishops Thursday to discuss the sex abuse scandal , according to the Vatican .
    Meghan Markle has been named the most stylish celebrity

    Meghan Markle has been named the most stylish celebrity

    Nuku'alofa in Tonga, meanwhile, is sure to be different to anywhere else Prince Harry and Meghan visit on their tour. The royal couple, now known as the Duke and Duchess of Sussex , will be in Australia between October 16 and 28.
  • Nintendo Switch Online launches September 18 with one-week free trial

    Nintendo Switch Online launches September 18 with one-week free trial

    Nintendo has just announced via social media that the Direct will indeed air tomorrow , September 13th. According to Nintendo's site , individual plans will go for about $4 a month, and $20 for a year.
    Apple Reveals iPhone XS, XS Max & More At Annual Press Event

    Apple Reveals iPhone XS, XS Max & More At Annual Press Event

    The iPhone XR will be available in 64GB, 128GB and 256GB models in white, black, blue, yellow, coral and (PRODUCT) RED for $749. With the new launches, Apple is hoping to expand its market share in the increasingly competitive smart-phone space.
    Patriots to sign former Browns first-rounder Coleman

    Patriots to sign former Browns first-rounder Coleman

    In a four-year National Football League career spent between the Panthers and Eagles, Barner has returned 30 punts for 259 yards. The 15th overall pick in 2016's draft, Coleman was traded from the Cleveland Browns to the Buffalo Bills during the preseason.
  • 'GET OUT OF ITS WAY!': 'Monster' Hurricane Florence aims to drench Carolinas

    He said Wednesday it was imperative that locals heed evacuation warnings and that the time to flee Florence is now. Rick Scott announced that the state will deploy resources to assist those affected in North and SC .
    Apple iPhone Xc, iPhone Xs and iPhone Xs Max details surface online

    Apple iPhone Xc, iPhone Xs and iPhone Xs Max details surface online

    It has happened nearly every time Apple has introduced a new design: iPhone 4, iPhone 5, iPhone 6/6 Plus, and iPhone X . According to some analysts, the new iPhone might be more expensive than the iPhone X which was launched at $1000.
    Tottenham's Hugo Lloris pleads guilty to drunk driving fined £50,000

    Tottenham's Hugo Lloris pleads guilty to drunk driving fined £50,000

    Lloris signed for Spurs from Lyon in 2012 and has made 209 appearances in the Premier League , keeping 75 clean sheets. David Sonn , the lawyer representing the player in court, says "the spectacular fall from grace is not lost on Mr.
  • WNBA Champions Storm vs Mystics Game 3 Recap

    WNBA Champions Storm vs Mystics Game 3 Recap

    She had just accepted the WNBA Finals MVP trophy, and was still in shock from the 98-82 Game 3 win over the Washington Mystics . The Storm outscored the Mystics 26-14 in the second quarter to extend their lead to 46-30 at halftime and never looked back.
    Pope calls meeting of key bishops on sexual abuse: Vatican

    Pope calls meeting of key bishops on sexual abuse: Vatican

    Every sixth case involved rape and at least 1,670 clergy were involved, according to Spiegel Online and Die Zeit. Conference of Catholic Bishops issued a policy in 2002 that is regarded as the gold standard policy.

    'DUCHA--': Meghan Markle’s sister slams her for acting ‘fake’

    As you know, the Duchess recently flew coach to spend time with her designer bestie Jessica Mulroney in Toronto. Meghan Markle and Kate Middleton are putting big smiles on the faces of many members of the public.


Popular

New York Democrats decide governor, attorney general races
She's called Cuomo a bully and says she represents a wave of liberals eager to take a greater role in American politics. Republicans already nominated Marcus Molinaro as their candidate for governor.

Amazon boss Jeff Bezos launches $2bn homeless fund
Bezos and his wife MacKenzie Bezos sit on the board of the Bezos Family Foundation , run by his parents. Bezos asked for suggestions for philanthropic focuses in a tweet a year ago .

NAFTA talks: Loosen protections on dairy sector, New York Republican says
The governing Liberal Party is holding its caucus retreat in Saskatoon on Wednesday and Thursday and it's not known whether Ms. We're just going to stay working constructively to get to that win, win, win that we know is there", he said in the interview.

Russian Federation to Hold Largest Military Exercises in almost 4 Decades
Details about the Sino-Russo joint military exercise, which is called "Vostok" war games, revealed the extent of the activity. It can be said that China and Russian Federation have been moving closer in a bid to take on the US.

Google's Pixel 3 launch event will happen on October 9th
The Pixel 3 will get a large display without a notch, while the Pixel 3 XL may have a massive display with a notch on the top. After the grand unveiling, a number of Pixel 3 XL unboxing, hands-on and full review will be published all over the Internet.

Ford fights back on ruling
He added that the Tory government will use "every tool at our disposal" to uphold the constitution and democratic rights of the people of Ontario.

Angus King says he’ll vote against Trump high court pick Kavanaugh
Raising money to campaign against Kavanaugh is certainly legal, as it is to campaign against Collins. Follayttar described the effort as a grassroots mobilization made up of smaller-dollar pledges.

'Man Of Steel' Star Henry Cavill Is Done Playing Superman
During a recent investor conference, WarnerMedia CEO John Stankey hinted that a change was brewing in the DC extended universe. He's emerged as an early contender for the role, should Warner Bros . and DC opt to cast another relative unknown in the role.

Leaked images and latest news of iPhone XS
Apple's upcoming iPhone XS has already leaked out, and now it's time for the next Apple Watch to have its moment in the spotlight. While two iPhone models will feature an OLED panel, one would be a comparatively cheaper smartphone with an LCD display.

Apple to unveil new iPhones, revamped iPads and more
Apple's events are pompous, neurotically controlled celebrations of capitalist extraction, but it's hard to deny their importance. Chief executive Tim Cook said the third-quarter results were driven by continued strong sales of iPhones, services and wearables.