FOREX TradingCharts.com

Financial News: Turkey Central Bank Slashes Rate By 250 Bps

Turkey Central Bank Slashes Rate By 250 Bps

10/24/2019 - 08:30:00 (RTTNews)

(RTTNews) - Turkey's central bank resorted to another sharp cut in interest rate on Thursday, saying inflation outlook continued to improve.

The Monetary Policy Committee, led by TCMB Governor Murat Uysal decided to reduce the policy rate, which is the one-week repo auction rate, to 14.00 percent from 16.50 percent. Economists had forecast a 100 basis point reduction.

The bank had reduced the rate by 325 basis points in September and by 425 basis points in July.

"At this point, the current monetary policy stance, to a large part, is considered to be consistent with the projected disinflation path," the bank said in a statement.

"In addition to the stable course of the Turkish lira, improvement in inflation expectations and mild domestic demand conditions supported the disinflation in core indicators," the bank said.

The bank pledged to continue to use all available tools in pursuit of the price stability and financial stability objectives.

Inflation had eased to 9.26 percent in September, the lowest since early 2017.

The bank expects inflation to materialize notably below the projections of the July Inflation Report by the end of the year.

In July, Turkish President Recep Tayyip Erdogan had removed Murat Cetinkaya from the post of the TCMB Governor for not easing monetary policy fast enough.

Uysal recently suggested that the central bank might look to moderate its pace of rate reduction.

September's plunge in inflation alongside the removal of US sanctions gave the Turkish central bank the green light to deliver another larger-than-expected interest rate cut today and the easing cycle has a little further to run in the coming months, Jason Tuvey, an economist at Capital Economics, said.

But with inflation set to start rising again and the lira likely to come under pressure, the central bank will have to reverse course by the middle of next year, Tuvey added.

For comments and feedback: contact editorial@rttnews.com

Copyright(c) 2019 RTTNews.com. All Rights Reserved

Market News provided by RTTNews

RECENT INTERNATIONAL FINANCIAL NEWS


U.S. Business Inventories Unexpectedly Unchanged In September (05 hr(s), 56 min(s), 13 sec(s) ago)
(RTTNews) - A report released by the Commerce Department on Friday showed business inventories in ...Full Story»

U.S. Industrial Production Slumps Due To Strike At GM (06 hr(s), 09 min(s), 13 sec(s) ago)
(RTTNews) - Industrial production in the U.S. fell by much more than expected in the month of Octo ...Full Story»

Growth In New York Manufacturing Activity Unexpectedly Slows In November (06 hr(s), 33 min(s), 13 sec(s) ago)
(RTTNews) - A report released by the Federal Reserve Bank of New York on Friday unexpectedly showe ...Full Story»

U.S. Import Prices Fall 0.5% In October Amid Steep Drop In Fuel Prices (06 hr(s), 43 min(s), 13 sec(s) ago)
(RTTNews) - Import prices in the U.S. fell by much more than expected in the month of October, acc ...Full Story»

U.S. Retail Sales Rebound Slightly More Than Expected In October (06 hr(s), 53 min(s), 13 sec(s) ago)
(RTTNews) - After reporting an unexpected drop in retail sales in the previous month, the Commerce ...Full Story»

U.S. Industrial Production Slumps Much More Than Expected In October (06 hr(s), 57 min(s), 13 sec(s) ago)
(RTTNews) - Industrial production in the U.S. fell by much more than expected in the month of Octo ...Full Story»

New York Manufacturing Index Unexpectedly Edges Lower In November (07 hr(s), 37 min(s), 13 sec(s) ago)
(RTTNews) - A report released by the Federal Reserve Bank of New York on Friday unexpectedly showe ...Full Story»

U.S. Import Prices Drop Much More Than Expected In October (07 hr(s), 41 min(s), 13 sec(s) ago)
(RTTNews) - Import prices in the U.S. fell by much more than expected in the month of October, acc ...Full Story»

Search

INTERNATIONAL FINANCIAL NEWS

U.S. Business Inventories Unexpectedly Unchanged In September

11/15/2019 - 10:25 AM (RTTNews)
(RTTNews) - A report released by the Commerce Department on Friday showed business inventories in ...Full Story>>

U.S. Industrial Production Slumps Due To Strike At GM

11/15/2019 - 10:12 AM (RTTNews)
(RTTNews) - Industrial production in the U.S. fell by much more than expected in the month of Octo ...Full Story>>

Growth In New York Manufacturing Activity Unexpectedly Slows In November

11/15/2019 - 09:48 AM (RTTNews)
(RTTNews) - A report released by the Federal Reserve Bank of New York on Friday unexpectedly showe ...Full Story>>

U.S. Import Prices Fall 0.5% In October Amid Steep Drop In Fuel Prices

11/15/2019 - 09:38 AM (RTTNews)
(RTTNews) - Import prices in the U.S. fell by much more than expected in the month of October, acc ...Full Story>>

U.S. Retail Sales Rebound Slightly More Than Expected In October

11/15/2019 - 09:28 AM (RTTNews)
(RTTNews) - After reporting an unexpected drop in retail sales in the previous month, the Commerce ...Full Story>>
Copyright © 2019. All market data is provided by Barchart Solutions. Information is provided "as is" and solely for informational purposes, not for trading purposes or advice. To see all exchange delays and terms of use, please see disclaimer.