Turkish central bank raises key interest rate to 50% as inflation soars
9 months, 3 weeks ago

Turkish central bank raises key interest rate to 50% as inflation soars

Associated Press  

ANKARA, Turkey — Turkey’s central bank raised its key interest rate by 5 percentage points on Thursday, resuming a policy of rate hikes aimed at combating soaring inflation that is causing households severe economic pain. A series of rate cuts by the central bank spurred double-digit inflation and a currency crisis until Erdogan reversed course following his re-election in May and appointed a new economic team. Under the new team, the central bank had raised the benchmark interest rate from 8.5% in June to 45% in January before pausing the rate hikes last month. “Although the end of the tightening cycle was declared in January, the Turkish central bank was forced to lift the one-week repo rate from 45% to 50% despite local elections looming,” Bartosz Sawicki, a market analyst at Conotoxia, wrote in an emailed note.

Inflation Bank Central Turkish Rate Unorthodox Economic  50  inflation  raises  interest  turkish  key  hikes  benchmark  unorthodox  economic  soars  central  elections  rate  bank

History of this topic

Turkey Inflation Likely Missed Central Bank Target For End-2024
2 weeks ago

Turkey Inflation Likely Missed Central Bank Target For End-2024

Live Mint  

-- Turkish inflation in December likely eased less than the central bank projected, just as policymakers have started to set the stage for a more accommodative stance in the new year. The monetary authority justified lowering borrowing costs — the first time since February 2023 — by citing preliminary data showing an improvement in services inflation and the underlying trend …

Turkey’s central bank lowers key interest rate to 47.5%
2 weeks, 6 days ago

Turkey’s central bank lowers key interest rate to 47.5%

Associated Press  

ANKARA, Turkey — Turkey’s central bank lowered its key interest rate by 2.5 percentage points to 47.5% on Thursday, carrying out its first rate cut in nearly two years as it tries to control soaring inflation. Citing slowing inflation, the bank’s Monetary Policy Committee said it was reducing its one-week repo rate to 47.5% from the current 50%. Inflation in …

Turkey to Pivot Toward Interest-Rate Cut After One More Hold
1 month, 3 weeks ago

Turkey to Pivot Toward Interest-Rate Cut After One More Hold

Live Mint  

-- Turkey’s central bank will probably hold its main interest rate for an eighth straight month this week, though policymakers could indicate the start of an easing cycle as soon as December. But despite appearing to commit to high rates at the last policy meeting, Central Bank Governor Fatih Karahan adopted a different tone earlier this month, while revising up …

Russia’s Central Bank hikes interest rate as inflation soars
5 months, 2 weeks ago

Russia’s Central Bank hikes interest rate as inflation soars

Associated Press  

MOSCOW — Russia’s Central Bank on Friday raised its key lending rate to its highest level in more than two years to stem soaring inflation in an overheated economy hit by Western sanctions in response to Moscow’s military action in Ukraine. “For inflation to begin decreasing again, monetary policy needs to be tightened further.” It noted that inflationary risks have …

European Central Bank leaves key interest rate at 3.75%, waits for signs inflation is under control
5 months, 4 weeks ago

European Central Bank leaves key interest rate at 3.75%, waits for signs inflation is under control

Associated Press  

FRANKFURT, Germany — The European Central Bank left its key interest rate benchmark unchanged Thursday as its rate-setting council and President Christine Lagarde take their time to make sure stubborn inflation is firmly under control before lowering rates again. She added that “obviously, given the size of the US financial markets in particular, the developments taking place in the United …

Turkey’s new central bank chief assures that work to combat inflation will press on
11 months, 1 week ago

Turkey’s new central bank chief assures that work to combat inflation will press on

Associated Press  

ANKARA, Turkey — The work to tame inflation in Turkey — namely through interest rate hikes — will continue “with determination,” the country’s new central bank chief said Thursday, offering some certainty about efforts to right the battered economy following his precedessor’s surprise resignation. Speaking for the first time since taking the helm of the central bank on Saturday, Fatih …

Turkey's central bank hikes key interest rate again to 45% to battle inflation
11 months, 3 weeks ago

Turkey's central bank hikes key interest rate again to 45% to battle inflation

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy Turkey’s central bank raised its …

Turkey’s central bank hikes key interest rate again to 45% to battle inflation
11 months, 3 weeks ago

Turkey’s central bank hikes key interest rate again to 45% to battle inflation

Associated Press  

ANKARA, Turkey — Turkey’s central bank raised its key interest rate by another 2.5 percentage points on Thursday, pressing ahead with a series of hikes aimed at combating inflation that reached nearly 65% in December. It’s the eighth interest rate hike since President Recep Tayyip Erdogan has abandoned his unconventional economic policies that economists say helped trigger a currency crisis …

Turkish central bank raises interest rate to 42.5% to combat high inflation
1 year ago

Turkish central bank raises interest rate to 42.5% to combat high inflation

Associated Press  

ANKARA, Turkey — Turkey’s central bank hiked its key interest rate by 2.5 percentage points on Thursday as part of its efforts to combat high inflation that has left many households struggling to afford rent and essential items. The bank’s Monetary Policy Committee raised its benchmark rate to 42.5%, delivering its seventh interest rate hike in a row to tame …

Turkey’s central bank hikes interest rates again as it tries to tame eye-watering inflation
1 year, 1 month ago

Turkey’s central bank hikes interest rates again as it tries to tame eye-watering inflation

Associated Press  

ANKARA, Turkey — Turkey’s central bank delivered another huge interest rate hike on Thursday as it tries to curb double-digit inflation that has left households struggling to afford food and other basic goods. The bank pushed its policy rate up by 5 percentage points, to 40%, marking its sixth big interest rate hike in a row focused on beating down …

Reserve Bank raises interest rates, repayments now up more than 50pc since hikes began
1 year, 2 months ago

Reserve Bank raises interest rates, repayments now up more than 50pc since hikes began

ABC  

After keeping rates on hold for the past four meetings, the Reserve Bank has resumed hiking its cash rate target, with a quarter of a percentage point increase taking the benchmark interest rate to 4.35 per cent. Key points: At 4.35 per cent, the cash rate is at its highest level in 12 years The rate rise will add around …

Turkey’s central bank opts for another interest rate hike in efforts to curb inflation
1 year, 2 months ago

Turkey’s central bank opts for another interest rate hike in efforts to curb inflation

Associated Press  

ANKARA, Turkey — Turkey’s central bank hiked interest rates again on Thursday, pressing ahead with more conventional economic policies recently embraced by President Recep Tayyip Erdogan to fight inflation. The bank said its monetary policy committee “decided to continue the monetary tightening process in order to establish the disinflation course as soon as possible.” It also announced more such moves …

Turkey’s central bank hikes interest rates again in further shift in economic policies
1 year, 3 months ago

Turkey’s central bank hikes interest rates again in further shift in economic policies

Associated Press  

ISTANBUL — Turkey’s central bank raised its key interest rate by 5 percentage points Thursday, another large but expected hike that signals a continued push toward more traditional economic policies under President Recep Tayyip Erdogan. The team includes former Merrill Lynch banker Mehmet Simsek, who returned as finance minister, a post he held until 2018, and Hafize Gaye Erkan who …

The Federal Reserve holds interest rates steady but hints at more action this year
1 year, 3 months ago

The Federal Reserve holds interest rates steady but hints at more action this year

NPR  

The Federal Reserve holds interest rates steady but hints at more action this year Enlarge this image toggle caption Saul Loeb/AFP via Getty Images Saul Loeb/AFP via Getty Images The Federal Reserve left interest rates unchanged Wednesday, but signaled that it's open to an additional rate hike, if necessary, to combat stubborn inflation. Sponsor Message Economic projections released Wednesday show …

Europe’s central bank hikes key interest rate to record high even as recession threat grows
1 year, 4 months ago

Europe’s central bank hikes key interest rate to record high even as recession threat grows

Associated Press  

FRANKFURT, Germany — The European Central Bank hiked its key interest rate to a record high Thursday, pressing its fight against stubbornly high inflation that has been plaguing consumers — even as worries grow that higher borrowing costs could help push the economy into recession. The increase of a quarter-percentage point comes as central banks around the world, including the …

Long opposed to rate increases, Erdogan now backs plan that includes raising rates, minister says
1 year, 4 months ago

Long opposed to rate increases, Erdogan now backs plan that includes raising rates, minister says

Associated Press  

ANKARA, Turkey — Turkish President Recep Tayyip Erdogan, long a proponent of cutting interest rates, now supports his advisers’ economic plan that includes raising rates, a member of his economic team said Thursday. In a theory that runs contrary to traditional economic thinking, Erdogan has long pressured Turkey’s central bank governors to lower rates. “Whether it’s disinflation or the fiscal …

Turkey’s central bank unleashes a big interest rate hike in another sign of an economic shift
1 year, 4 months ago

Turkey’s central bank unleashes a big interest rate hike in another sign of an economic shift

Associated Press  

ANKARA, Turkey — Turkey’s central bank raised its key interest rate by an aggressive 7.5 percentage points on Thursday, a larger-than-expected boost that offers a new sign of a return to more traditional economic policies under President Recep Tayyip Erdogan. The team includes former Merrill Lynch banker Mehmet Simsek, who returned as finance minister, a post he held until 2018, …

Turkey hikes interest rates in another sign of economic normalcy. But markets expected more
1 year, 5 months ago

Turkey hikes interest rates in another sign of economic normalcy. But markets expected more

Associated Press  

ISTANBUL — Turkey’s central bank raised its key interest rate Thursday, another sign of commitment to a traditional path of battling inflation but still falling below expectations after critics blamed President Recep Tayyip Erdogan’s economic policies for inflaming a cost-of-living crisis. Central banks around the world have been hiking rates rapidly to battle spikes in consumer prices following the pandemic …

Turkey’s central bank sharply raises interest rates. That could signal an economic turnaround
1 year, 6 months ago

Turkey’s central bank sharply raises interest rates. That could signal an economic turnaround

Associated Press  

ANKARA, Turkey — Turkey’s central bank delivered a large interest rate hike Thursday, signaling a shift toward more conventional economic policies to counter sky-high inflation following criticism that President Recep Tayyip Erdogan’s approach has made a cost-of-living crisis worse. Simsek said soon after his appointment that Turkey had no other option but to return to a “rational ground.” In another …

US Federal Reserve Keeps Interest Rate Unchanged after 10 Straight Hikes
1 year, 7 months ago

US Federal Reserve Keeps Interest Rate Unchanged after 10 Straight Hikes

News 18  

The Federal Reserve kept its key interest rate unchanged Wednesday after having raised it 10 straight times to combat high inflation. The Fed’s move to leave its benchmark rate at about 5.1%, its highest level in 16 years, suggests that it believes the much higher borrowing rates it’s engineered have made some progress in taming inflation. One reason why the …

Turkey's annual inflation rate dips under 40% for first time in 16 months
1 year, 7 months ago

Turkey's annual inflation rate dips under 40% for first time in 16 months

Firstpost  

Turkey’s annual inflation rate fell below 40 per cent in May for the first time in 16 months, thanks to a brief offer of free petrol to homes, according to official figures released on Monday. According to the country’s statistics office, consumer prices grew 39.6 per cent year on year and were nearly steady, at 0.04 per cent, compared to …

Turkey’s lira hits record low, stocks rise after Erdogan’s win
1 year, 7 months ago

Turkey’s lira hits record low, stocks rise after Erdogan’s win

Al Jazeera  

The Turkish leader won the presidency for a third time after a run-off vote on Sunday. The Turkish lira plunged to record lows after the re-election of President Recep Tayyip Erdogan, a sign that currency markets are not confident in the country’s economic future after the longtime leader’s victory. But Turkish stocks, on the other hand, rose as Erdogan entered …

Turkey’s December inflation slows to 64% in boost to Erdogan
2 years ago

Turkey’s December inflation slows to 64% in boost to Erdogan

Associated Press  

ANKARA, Turkey — Inflation in Turkey showed a sharp drop in December thanks mainly to technical reasons — which could help President Recep Tayyip Erdogan ‘s standing before an election, but is unlikely to bring relief to households suffering from a cost of living crisis. The Inflation Research Group — made up of independent academics and experts — said Tuesday …

In US, key interest rate hiked to 15-year-high to fight inflation
2 years, 1 month ago

In US, key interest rate hiked to 15-year-high to fight inflation

Hindustan Times  

The Federal Reserve reinforced its inflation fight Wednesday by raising its key interest rate for the seventh time this year and signaling more hikes to come. “But it will take substantially more evidence to give confidence that inflation is on a sustained downward path.” In its updated forecasts, the Fed’s policymakers predicted slower growth and higher unemployment for next year …

Turkish inflation eases for 1st time in more than a year
2 years, 1 month ago

Turkish inflation eases for 1st time in more than a year

Associated Press  

ANKARA, Turkey — Annual inflation in Turkey slightly eased in November for the first time in more than a year, according to official figures released on Monday, although it remains close to 24-year highs. While the pandemic and Russia’s invasion of Ukraine have stoked inflation around the world, economists believe that inflation in Turkey was additionally fueled by President Recep …

Turkish central bank cuts rates again despite high inflation
2 years, 1 month ago

Turkish central bank cuts rates again despite high inflation

Associated Press  

ANKARA, Turkey — Turkey’s central bank delivered another outsized interest rate cut Thursday despite inflation running at more than 85% and other countries moving the opposite way to ease the pain of soaring prices. The central bank said its Monetary Policy Committee decided to lower the benchmark policy rate by 1.5 percentage points to 9%, following a series of similar …

European Central Bank leader doubles down on rate increases
2 years, 2 months ago

European Central Bank leader doubles down on rate increases

Associated Press  

FRANKFURT, Germany — The head of the European Central Bank underlined the bank’s determination to fight rampant inflation with more interest rate increases on top of record hikes, saying Friday that “our job is far from being completed” and that even a mild recession would not be enough to bring rising prices back under control. ECB President Christine Lagarde said …

Yearly inflation in Turkey rises to new 24-year high of 85%
2 years, 2 months ago

Yearly inflation in Turkey rises to new 24-year high of 85%

Associated Press  

ANKARA, Turkey — Annual inflation in Turkey continued to rise in October, official figures showed Thursday, pushing the price of essential goods higher and amplifying a cost-of-living crisis in the country. While the pandemic and Russia’s invasion of Ukraine have stoked inflation around the world, economists believe that inflation in Turkey was fueled by President Recep Tayyip Erdogan’s belief that …

Turkish central bank makes huge rate cut amid 83% inflation
2 years, 2 months ago

Turkish central bank makes huge rate cut amid 83% inflation

Associated Press  

ISTANBUL — Turkey’s central bank has slashed interest rates for the third month in a row, making its biggest drop this year despite sky-high inflation that is squeezing people’s finances as it follows President Recep Tayyip Erdogan’s unorthodox economic views. “It is critically important that financial conditions remain supportive to preserve the growth momentum in industrial production and the positive …

Turkey's annual inflation hits new 24-year high at 83.45 %
2 years, 3 months ago

Turkey's annual inflation hits new 24-year high at 83.45 %

Firstpost  

Experts say inflation is much higher than official statistics, and the independent Inflation Research Group on Monday put the annual rate at an eye-watering 186.27 per cent Ankara: Turkey’s annual inflation reached a new 24-year high of 83.45 per cent in September, according to official data on Monday, pushing the cost of essential goods higher and further hitting households already …

Central banks worldwide tighten policies to cool inflation
2 years, 3 months ago

Central banks worldwide tighten policies to cool inflation

Associated Press  

The U.S. Federal Reserve has been the most aggressive in using interest rate hikes to cool inflation that is battering both households and businesses this year. Following are actions taken Thursday, and also earlier this week, by central banks globally: Turkey: The Central Bank of the Republic of Turkey lowered the benchmark rate by 1 percentage point, to 12%. United …

Turkey’s central bank makes big rate cut amid 80% inflation
2 years, 3 months ago

Turkey’s central bank makes big rate cut amid 80% inflation

Associated Press  

ISTANBUL — Turkey’s central bank delivered another massive interest rate cut Thursday despite eye-popping inflation above 80%, moving the opposite way from world economies that are raising rates to control prices as the lira sunk to record lows. Turkey has followed President Recep Tayyip Erdogan’s unorthodox belief that high interest rates cause high inflation, cutting borrowing costs despite consumer prices …

Inflation is a global problem. Here’s how central banks are addressing it
2 years, 3 months ago

Inflation is a global problem. Here’s how central banks are addressing it

CNN  

New York CNN Business — Just like misery, inflation loves company. United States Federal Reserve Current annual consumer inflation rate: 8.3% Benchmark interest rate: 2.25-2.5% Last rate hike: 75 basis points in July Start of hiking cycle: March 2022 The Federal Reserve is the most important central bank in the world — the US dollar has been the world’s primary …

Turkey lowers interest rate even as inflation soars to 80%
2 years, 4 months ago

Turkey lowers interest rate even as inflation soars to 80%

Associated Press  

ANKARA, Turkey — Turkey’s central bank on Thursday lowered its key interest rate despite inflation surging to nearly 80% and making it difficult for people to buy what they need, falling in line with the unorthodox economic views of the country’s president. President Recep Tayyip Erdogan has pressured the bank into lowering borrowing costs in a bid to boost economic …

Turkey launched an unusual experiment to fight inflation by cutting interest rates. This is how it spectacularly backfired
2 years, 5 months ago

Turkey launched an unusual experiment to fight inflation by cutting interest rates. This is how it spectacularly backfired

ABC  

While much of the world anxiously waits to see if central banks will keep raising interest rates to combat a post-pandemic surge in inflation, Turkey is bucking the global trend. He has fired three central bank governors in four years for attempting to raise interest rates, and described anyone who draws a link between rates and inflation as "illiterates and …

Data puts Turkey’s annual inflation at 78.6%, a 24-year high
2 years, 6 months ago

Data puts Turkey’s annual inflation at 78.6%, a 24-year high

Associated Press  

ISTANBUL — Annual inflation in Turkey hit 78.62% in June, the highest rate since 1998, according to official data released Monday. While many countries are seeing rising consumer prices, critics blame Turkey’s problems on President Recep Tayyip Erdogan’s economic policies. The Turkish leader insists that high borrowing costs cause inflation — a position that contradicts established economic thinking — and …

Data puts Turkey’s annual inflation at 73.5%, a 24-year high
2 years, 7 months ago

Data puts Turkey’s annual inflation at 73.5%, a 24-year high

Associated Press  

ANKARA, Turkey — Annual inflation in Turkey hit 73.5% in May, the highest rate since 1998, according to official data released Friday as a cost-of-living crisis in the country deepens. While many countries are seeing rising consumer prices, critics blame Turkey’s problems on President Recep Tayyip Erdogan’s economic policies. The Turkish leader insists that high borrowing costs cause inflation - …

Inflation in Turkey soars to eye-popping near 70% in April
2 years, 8 months ago

Inflation in Turkey soars to eye-popping near 70% in April

Associated Press  

ANKARA, Turkey — Inflation in Turkey soared to nearly 70% in April, official data showed Thursday, as skyrocketing prices eat away at earnings and put even basic necessities out of reach for many households. The Turkish Statistical Institute said consumer prices rose by 69.97% in April compared with the previous year, the biggest year-over-year increase since 2002. But in Turkey, …

Turkey’s inflation rate soars to almost 70 percent
2 years, 8 months ago

Turkey’s inflation rate soars to almost 70 percent

Al Jazeera  

The consumer price index has risen by 69.97 percent year-on-year in April compared with 61.14 percent in March. Turkey’s official inflation rate has spiralled to nearly 70 percent in April, posing a huge challenge to President Recep Tayyip Erdogan, whose unconventional economic policies are often blamed for the economic turmoil. The consumer price index rose by 69.97 percent year-on-year in …

Turkey’s inflation hits 61% climbing to new 20-year high
2 years, 9 months ago

Turkey’s inflation hits 61% climbing to new 20-year high

Associated Press  

ISTANBUL — Yearly inflation in Turkey hit 61.14% on Monday, climbing to a new 20-year high and deepening a cost of living crisis for many households. The Turkish Statistical Institute said consumer prices rose by 5.46% in March compared with the previous month. Turkey’s runaway inflation also follows a series of interest rate cuts late last year, in line with …

Turkish central bank doesn’t change rates as inflation soars
2 years, 9 months ago

Turkish central bank doesn’t change rates as inflation soars

Associated Press  

ISTANBUL — Turkey’s central bank kept interest rates unchanged for a third straight month Thursday as consumer prices surge at an eye-popping pace, coming after a series of rate cuts last year triggered a currency crisis that has made it difficult for people to buy basic goods. Other central banks around the world are moving to raise interest rates as …

Turkey’s inflation hits 54%, deepening cost-of-living woes
2 years, 10 months ago

Turkey’s inflation hits 54%, deepening cost-of-living woes

Associated Press  

ANKARA, Turkey — Turkey’s annual inflation rate further accelerated in February, official data showed Thursday, marking the biggest jump since 2002 and deepening the squeeze on households that are already struggling to purchase basic goods. In comparison, annual inflation increased by a record 5.8% in the 19 countries that use the euro currency in February and by 7.5% in the …

Turkey keeps interest rates unchanged despite surging inflation
2 years, 10 months ago

Turkey keeps interest rates unchanged despite surging inflation

Al Jazeera  

Turkey’s central bank held its benchmark interest rate steady for a second month running, even as inflation threatens Erdogan’s grip on power. Turkey’s central bank kept its benchmark interest rate unchanged for a second month on Thursday, as President Recep Tayyip Erdogan’s government struggles to contain price surges that could threaten his two-decade rule. Just ahead of Thursday’s decision, Erdogan …

Turkey’s central bank ends string of interest rate cuts
2 years, 11 months ago

Turkey’s central bank ends string of interest rate cuts

Associated Press  

ANKARA, Turkey — Turkey’s central bank kept a key interest rate unchanged on Thursday, halting a string of rate cuts that triggered a currency crisis and sent consumer prices skyrocketing. The bank’s Monetary Policy Committee said it decided to keep its policy rate “constant” at 14%, putting on hold a rate-cutting policy that has reduced borrowing costs by 5 percentage …

Turkey’s central bank hits pause, leaves interest rates unchanged
2 years, 11 months ago

Turkey’s central bank hits pause, leaves interest rates unchanged

Al Jazeera  

Turkey’s central bank voted to hit pause on an easing cycle that started in September and saw the lira crash. Turkey’s central bank has ended its latest policy-setting meeting by keeping interest rates unchanged, halting a cycle of cuts initiated last September that economists warned was plunging the country into a deep economic crisis and eroding confidence in the bank’s …

Turkish inflation surges to highest level since 2002
3 years ago

Turkish inflation surges to highest level since 2002

Al Jazeera  

The annual consumer inflation rate rose to 36.08 percent last month and food and energy prices soared. The annual consumer inflation rate rose to 36.08% last month, the highest since September 2002 and up sharply from 21.31% in November. The decision to slash five percentage points off the central bank’s benchmark rate led to an around 44% slide in the …

Turkish lira rebounds after Erdogan vows to prop up deposits
3 years ago

Turkish lira rebounds after Erdogan vows to prop up deposits

Associated Press  

ISTANBUL — Turkey’s currency made significant gains Tuesday after President Recep Tayyip Erdogan announced extraordinary measures that aim to safeguard deposits in the lira against volatility seen in recent weeks and boost confidence among Turks as they have watched their buying power erode. The currency has been on a rollercoaster ride since the country’s Central Bank began lowering interest rates …

Turkey’s Erdogan announces moves to encourage lira savings
3 years ago

Turkey’s Erdogan announces moves to encourage lira savings

Associated Press  

ANKARA, Turkey — Turkish President Recep Tayyip Erdogan on Monday announced a series of measures to encourage lira-denominated savings, easing the pressure on the beleaguered Turkish currency. In a televised speech following a Cabinet meeting, Erdogan said the government would offer a new financial vehicle that would “alleviate” the concerns of citizens who have been buying foreign currency, fearing that …

Turkey’s lira sinks to new low, prompting bank to intervene
3 years ago

Turkey’s lira sinks to new low, prompting bank to intervene

Associated Press  

ANKARA, Turkey — Turkey’s currency crashed to an new all-time low against the dollar Friday, a day after the Central Bank again lowered a key interest rate despite surging consumer prices, a move in line with President Recep Tayyip Erdogan’s unconventional economic policy. The Central Bank announced Thursday announced that it was cutting the key interest rate from 15% to …

Discover Related