Turkish Rate Hike – Currency Thoughts
Turkish Rate Hike
April 18, 2025
In a big surprise, officials at the Central Bank of Turkey (TCMB) lifted their interest rate yesterday by 350 basis points on the heels of three cuts of 250 bps undertaken between December and March. The new rate becomes 46.0%, defying analyst expectations that it was going to be kept at 42.5% in light of the greater-than-expected full percentage point drop in CPI inflation last month to 38.1%. Turkish inflation had previously yo-yoed from 8.6% prior to Covid to 85.5% in October 2022 to 38.2% in mid-2023 to 75.5% in May 2024, and officials fear a fresh upswing ahead from”potential effects of the rising protectionism in global trade on the disinflation process through global economic activity, commodity prices and capital flows.” The statement leaves the door open to additional rate hikes if deemed appropriate.
Copyright 2025, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
Tags: Central Bank of Turkey
ShareThisYou can leave a response, or trackback from your own site.
Leave a Reply
You must be logged in to post a comment.
