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☆ Saudi discussing $5 billion deposit for Turkey - Saudi finance ministry spox
▼ + stars: | 2022-11-22 | by ( ) www.reuters.com time to read: 1 min

DUBAI, Nov 22 (Reuters) - Saudi Arabia and Turkey are discussing a $5 billion deposit at Turkey's central bank, a Saudi Ministry of Finance spokesperson said on Tuesday. "We are in final discussion to make a USD 5 billion deposit with the central bank of (Turkey)," the spokesperson said in an emailed response to a Reuters query. Reporting by Ghaida Ghantous; Editing by Kirsten DonovanOur Standards: The Thomson Reuters Trust Principles.

The predicted cut would bring the cumulative easing in four months to 500 basis points, which the central bank says is necessary given signs of economic slowdown. The central bank will announce its rate decision at 1100 GMT on Nov. 24. Inflation has surged since autumn 2021, stoked by an unorthodox easing cycle of 500 basis points that sparked a currency crisis late last year. The central bank expects inflation to drop to 65.2% by end-2022, thanks largely to a so-called base effect. That compares to a median estimate of 70.25% in the latest Reuters poll and 68.06% in a central bank survey published on Friday.

☆ Turkey central bank firms grip on lira as election approaches
▼ + stars: | 2022-11-11 | by ( Nevzat Devranoglu | ) www.reuters.com time to read: +5 min

[1/2] A logo of Turkey's Central Bank is pictured at the entrance of its headquarters in Ankara, Turkey October 15, 2021. Unlike past schemes to support the lira, the central bank no longer needs to constantly tap its own reserves, according to 10 bankers and economists and one Turkish official. The central bank declined to comment for this article, but senior officials and President Tayyip Erdogan have regularly praised the new regulations. Bankers' calculations show the central bank has obtained about $100 billion this year under the new policy. Yet the central bank told bank executives this week it will continue with its regulations and policies, despite their criticism, according to sources at the meetings.

☆ Turkey's inflation hits 24-year high of 85.5% after rate cuts
▼ + stars: | 2022-11-03 | by ( ) www.reuters.com time to read: +2 min

ISTANBUL, Nov 3 (Reuters) - Turkish annual inflation climbed to a new 24-year high of 85.51% in October, official data showed on Thursday, slightly below forecast, after the central bank cut its policy rate despite surging prices. Inflation has surged since last year, when the lira slumped after the central bank began cutting its policy rate in an easing cycle long sought by President Tayyip Erdogan. In the last three months, the central bank slashed its policy rate by a total of 350 basis points to 10.5%. Month-on-month, consumer prices rose 3.54%, the Turkish Statistical Institute said, below 3.60% forecast in a Reuters poll. The annual inflation in October was the highest since June 1998, when Turkey was working to end a decade of high inflation.

☆ Turkey's inflation tops 85% as Erdogan continues to rule out interest rate hikes
▼ + stars: | 2022-11-03 | by ( Natasha Turak | ) www.cnbc.com time to read: +1 min

Russians tourists to Europe decreased dramatically over the summer, but rose in several other destinations, including Turkey (here). Inflation in Turkey rose for the 17th consecutive month in October, hitting 85.5% year-on-year as food and energy prices continued to climb, according to official figures. The monthly rise in consumer prices was 3.54%. Controversially, Turkish President Recep Tayyip Erdogan refuses to raise interest rates, insisting that it would harm the economy. Economists and critics say his policies have continued to hurt the lira and push inflation up, fomenting a currency crisis.

☆ Turkish central bank warns lenders against FX transactions during 'off hours,' other issues -letter
▼ + stars: | 2022-10-31 | by ( ) www.reuters.com time to read: +1 min

ANKARA, Oct 31 (Reuters) - Turkey's central bank sent a letter to local lenders on Monday, warning them against conducting forex transactions with foreign banks during "off hours" and offering deposits with very high interest rates to avoid bond holding requirements. The central bank has introduced rules in recent months to reduce the gap between the policy rate and lending rates and encourage loans to sectors including exports and production. Such issues are "not supportive of establishing financial stability," the central bank said, adding that lenders should make the maximum effort to abide by regulations. The central bank had already warned banks last week about conducting forex sale-purchase transactions overnight, saying it will take "necessary measures" if the issue continues. In the past, if central bank requests on various issues have not been followed, it has taken measures such as requiring banks to hold government bonds.

☆ Turkey received $28 billion from unclear origins in the first 8 months of the year, per the FT. The country's finance minister says some of it was legitimate cash from holidaying Russians.
▼ + stars: | 2022-10-25 | by ( Huileng Tan | ) www.businessinsider.com time to read: +2 min

From January to August, a record $28 billion from unclear origins trickled into Turkey, the FT said. Turkey's finance minister believes that unaccounted-for tourism revenues were a key part of such inflows. However, the inflows are all legitimate and legal, Nureddin Nebati, the Turkish finance minister said. Turkey's finance minister, however, has played down these concerns. Nebati told the FT Turkey and Russia's relationship are just "good neighbourly relations."

☆ Turkey slashes interest rates by 150 basis points despite inflation at 83%
▼ + stars: | 2022-10-20 | by ( Natasha Turak | ) www.cnbc.com time to read: +2 min

Turkey's central bank slashed its key interest rate by 150 basis points for the third consecutive month of cuts on Thursday, from 12% to 10.5% — despite Turkish inflation at more than 83%. Market analysts expected a 100 basis-point cut, so the move still managed to take many by surprise despite the increasing regularity of Turkey's interest rate cuts. Erdogan vocally espouses the unorthodox belief that raising interest rates increases inflation, rather than the other way around, and has called raising rates "the mother of all evil." The lira was roughly flat after touching an all-time low following the news at 18.615 to the dollar. "The lira remains weak, real yields are artificially low, inflation has surged and the current account remains in deficit.

☆ Turkish central bank to cut rates to 11% after Erdogan nudge
▼ + stars: | 2022-10-14 | by ( ) www.reuters.com time to read: +3 min

ISTANBUL, Oct 14 (Reuters) - Turkey's central bank is expected to cut its policy rate by 100 basis points to 11% next week, a Reuters poll showed on Friday, after President Tayyip Erdogan called for more easing each month and said rates should be single digits by year-end. The central bank has shocked the markets twice in the past two months by cutting its policy rate (TRINT=ECI) by 100 basis points each time, lowering it to 12%, despite inflation soaring above 83% in September. Register now for FREE unlimited access to Reuters.com RegisterThe president, who has great influence over the central bank, gave even more explicit policy direction earlier this month when he said the bank would continue cuts every month "as long as I am in power". Thirteen out of 20 economists that participated in the Reuters poll predicted the bank would lower its policy rate to 11% at its meeting on Oct. 20. Inflation has surged since November 2021 after the central bank embarked on an easing cycle that saw rates lowered by 500 basis points between September and December last year.

☆ Turkey's Erdogan advises central bank to cut rates at upcoming meetings
▼ + stars: | 2022-09-29 | by ( ) www.reuters.com time to read: +2 min

Turkey's central bank cut its policy rate by 200 basis points to 12% in the last two months, delivering shocks to markets after inflation surged to 80% in August. The rate cuts are part of Erdogan's unorthodox policy of lowering rates to lower inflation. "We have discussed, are discussing this with our central bank. I suggested the need for this to come down further in upcoming monetary policy committee meetings," Erdogan added. On Wednesday, Erdogan said interest rates will come down to single digits by year-end, despite a global tightening cycle, an ailing currency and soaring energy prices.

☆ Turkey's Erdogan hopes policy rate will come down to single digits by year-end
▼ + stars: | 2022-09-28 | by ( ) www.reuters.com time to read: 1 min

ISTANBUL, Sept 28 (Reuters) - Turkish President Tayyip Erdogan on Wednesday said he hopes the central bank's monetary policy committee will deliver another cut to its policy rate next month and bring it down to single digits by year-end. Erdogan, speaking in a televised interview with broadcaster CNN Turk, said Turkey aims to strengthen the lira by reducing interest rates. Turkey's central bank unexpectedly cut its policy rate by 100 basis points twice in the past two months, lowering it to 12% despite inflation at more than 80% in August. An easing cycle at the end of last year, long sought by Erdogan, sparked a currency crisis. Register now for FREE unlimited access to Reuters.com RegisterReporting by Ali Kucukgocmen; Editing by Mark PorterOur Standards: The Thomson Reuters Trust Principles.

☆ Turkey will lower interest rates further, Erdogan says
▼ + stars: | 2022-09-28 | by ( ) www.reuters.com time to read: 1 min

ISTANBUL, Sept 28 (Reuters) - Turkey will continue cutting interest rates and not raise them, President Tayyip Erdogan said on Wednesday, repeating his unorthodox view that lower rates will lead to lower inflation. Speaking in a televised interview with broadcaster CNN Turk, Erdogan called on Turks to take advantage of low rates to make investments. Turkey's central bank unexpectedly cut its policy rate by 100 basis points twice in the past two months, lowering it to 12%, despite inflation at more than 80% in August. Register now for FREE unlimited access to Reuters.com RegisterReporting by Ali Kucukgocmen Editing by Chris ReeseOur Standards: The Thomson Reuters Trust Principles.

☆ Turkish Lira hits record low after the country's central bank moves forward with another rate cut despite soaring inflation
▼ + stars: | 2022-09-22 | by ( Matthew Fox | ) www.businessinsider.com time to read: +3 min

The Turkish Lira fell to a record low on Thursday after the country's central bank cut interest rates. Turkey's central bank has been cutting rates despite soaring inflation due to pressure from the country's president. Turkey's inflation rate topped 80% in August, and the central bank responded with a 100 basis point rate cut. The Turkish central bank cut rates by 100 basis points on Thursday, bringing its one-week repo rate to 12% from 13%. It is important that financial conditions remain supportive to preserve the growth momentum in industrial production and the positive trend in employment," Turkey's central bank said.

A logo of Turkey's Central Bank (TCMB) is pictured at the entrance of the bank's headquarters in Ankara, Turkey April 19, 2015. Turkey's lira touched a record 18.42 versus the dollar, surpassing the level reached during a full-blown currency crisis last December. The European Central Bank also raised its key rates by 75 basis points this month. One had predicted a 50 basis-point cut to 12.50%, while two forecast a 100 basis-point cut to 12%. Turkish lira timeline September 2022Each rate cut weighs more on country risks and the lira, said Ipek Ozkardeskaya, senior analyst at Swissquote Bank.

☆ Central banks raise rates again as Fed drives global inflation fight
▼ + stars: | 2022-09-22 | by ( Francesco Canepa | ) www.reuters.com time to read: +4 min

"We have got to get inflation behind us," Federal Reserve Chair Jerome Powell told reporters after Fed policymakers unanimously agreed to raise the central bank's benchmark overnight interest rate to a range of 3.00%-3.25%. Market participants have also pushed up their rate expectations for the European Central Bank, which is all but certain to hike again on Oct. 23. It is now seen taking its own interest rate to almost 3% next year from 0.75% now. We won't be raising interest rates for some time," Bank of Japan Governor Haruhiko Kuroda said after the policy decision. Meanwhile, Turkey's central bank continued with its unorthodox policy on Thursday by delivering another surprise interest rate cut despite inflation running at more than 80%, sending the lira to an all-time low against the dollar.

☆ Turkey cuts interest rates again as country struggles under 80% inflation
▼ + stars: | 2022-09-22 | by ( Natasha Turak | ) www.cnbc.com time to read: +2 min

Turkey's central bank surprised markets once again with its decision Thursday to cut its key interest rate, despite inflation in the country surging beyond 80%. The country's monetary policymakers opted for a 100 basis point cut, bringing the key one-week repo rate from 13% to 12%. In August, Turkish inflation rate was recorded at 80.2%, quickening for the 15th consecutive month and the highest level in 24 years. Turkey also cut rates by 100 basis points in August, and had gradually lowered interest rates by 500 basis points at the end of 2021, setting off a currency crisis. The months-long campaign to continuously lower rates as Turkey's trade and current account deficit balloons and its foreign exchange reserves run low has instead sent Turkey's currency, the lira, into a multi-year tailspin.

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