FOREX TradingCharts.com

Financial News: Turkish CB Raises Rate To 45%, Signals End

Turkish CB Raises Rate To 45%, Signals End To Tightening Cycle

01/25/2024 - 09:46:00 (RTTNews)

(RTTNews) - Turkey's central bank announced a further hike in the key interest rate, as expected, on Thursday with the aim of ensuring a decline in the underlying trend of inflation and returning it to the 5 percent target in the medium term, while signalling the end of its tightening cycle.

The Monetary Policy Committee of the Central Bank of the Republic of Turkey, or CBRT, headed by Governor Hafize Gaye Erkan, decided to hike the policy rate from 42.5 percent to 45.0 percent.

"Taking into account the lagged impact of monetary tightening, the Committee assesses that the monetary tightness required to establish the disinflation course is achieved and that this level will be maintained as long as needed," the central bank said.

"The Committee assesses that the current level of the policy rate will be maintained until there is a significant decline in the underlying trend of monthly inflation and until inflation expectations converge to the projected forecast range."

The central bank also said the policy stance will be reassessed if notable and persistent risks to the inflation outlook emerge.

Recent data showed that Turkey's consumer price inflation climbed to 64.8 percent from 62.0 percent in November.

The bank observed that headline inflation increased in line with the outlook presented in the last inflation report.

Capital Economics economist Liam Peach expects the disinflation process to start from the middle of the year.

"With inflation likely to drop towards 30-35% by year-end (from 65% now), there is still a possibility that the CBRT starts an easing cycle at the end of the year," Peach said.

"But our baseline view is that rates remain on hold throughout 2024."

For comments and feedback: contact editorial@rttnews.com

Copyright(c) 2024 RTTNews.com. All Rights Reserved

Market News provided by RTTNews

RECENT INTERNATIONAL FINANCIAL NEWS


Japan Manufacturing PMI Falls To 47.2 In February - Jibun (34 min(s), 42 sec(s) ago)
(RTTNews) - The manufacturing sector in Japan continued to contract, and at a faster pace, the lat ...Full Story»

Australia Manufacturing Sector Slips Into Contraction - Judo Bank (42 sec(s) ago)
(RTTNews) - The manufacturing sector in New Zealand fell into contraction in February, the latest ...Full Story»

New Zealand Has NZ$976 Million Trade Shortfall (53 min(s), 42 sec(s) ago)
(RTTNews) - New Zealand posted a merchandise trade deficit of NZ$976 million in January, Statistic ...Full Story»

South Korea Rate Decision On Tap For Thursday (28 min(s), 42 sec(s) ago)
(RTTNews) - The Bank of Korea will wrap up its monetary policy meeting on Thursday and then announ ...Full Story»

Fed Officials Wary Of Cutting Rates 'Too Quickly,' Minutes Reveal (21 min(s), 42 sec(s) ago)
(RTTNews) - With risks to the outlook for inflation still seen as tilted slightly to the upside, t ...Full Story»

U.K. Pay Awards Fall As Economy Slips Into Recession (08 min(s), 42 sec(s) ago)
(RTTNews) - U.K. employers lowered the pay awards in settlements at the start of the year as the e ...Full Story»

Eurozone Consumer Confidence Improves More Than Expected (38 min(s), 42 sec(s) ago)
(RTTNews) - Euro area consumer confidence improved more than expected in February after deteriorat ...Full Story»

EU Exports To Russia Down To More Than A Third Since Ukraine War (58 min(s), 42 sec(s) ago)
(RTTNews) - EU exports to Russia have shrunk to 37 percent of their level since the war in Ukraine ...Full Story»

Search

INTERNATIONAL FINANCIAL NEWS

Japan Manufacturing PMI Falls To 47.2 In February - Jibun

02/21/2024 - 19:39 PM (RTTNews)
(RTTNews) - The manufacturing sector in Japan continued to contract, and at a faster pace, the lat ...Full Story>>

Australia Manufacturing Sector Slips Into Contraction - Judo Bank

02/21/2024 - 17:05 PM (RTTNews)
(RTTNews) - The manufacturing sector in New Zealand fell into contraction in February, the latest ...Full Story>>

New Zealand Has NZ$976 Million Trade Shortfall

02/21/2024 - 16:58 PM (RTTNews)
(RTTNews) - New Zealand posted a merchandise trade deficit of NZ$976 million in January, Statistic ...Full Story>>

South Korea Rate Decision On Tap For Thursday

02/21/2024 - 16:33 PM (RTTNews)
(RTTNews) - The Bank of Korea will wrap up its monetary policy meeting on Thursday and then announ ...Full Story>>

Fed Officials Wary Of Cutting Rates 'Too Quickly,' Minutes Reveal

02/21/2024 - 14:26 PM (RTTNews)
(RTTNews) - With risks to the outlook for inflation still seen as tilted slightly to the upside, t ...Full Story>>

Do not sell my personal information

Copyright © 2024. 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.