this post was submitted on 23 Mar 2024
149 points (100.0% liked)

World News

39004 readers
2623 users here now

A community for discussing events around the World

Rules:

Similarly, if you see posts along these lines, do not engage. Report them, block them, and live a happier life than they do. We see too many slapfights that boil down to "Mom! He's bugging me!" and "I'm not touching you!" Going forward, slapfights will result in removed comments and temp bans to cool off.

We ask that the users report any comment or post that violate the rules, to use critical thinking when reading, posting or commenting. Users that post off-topic spam, advocate violence, have multiple comments or posts removed, weaponize reports or violate the code of conduct will be banned.

All posts and comments will be reviewed on a case-by-case basis. This means that some content that violates the rules may be allowed, while other content that does not violate the rules may be removed. The moderators retain the right to remove any content and ban users.


Lemmy World Partners

News !news@lemmy.world

Politics !politics@lemmy.world

World Politics !globalpolitics@lemmy.world


Recommendations

For Firefox users, there is media bias / propaganda / fact check plugin.

https://addons.mozilla.org/en-US/firefox/addon/media-bias-fact-check/

founded 1 year ago
MODERATORS
 

Hawkish rise 10 days before local elections is seen as a signal of independence from politics

Turkey’s central bank unexpectedly raised interest rates to 50% on Thursday, citing a deteriorating inflation outlook and pledging to tighten further if it looks like inflation is significantly and persistently worsening.

The hawkish move came 10 days before local elections and was seen by analysts as a signal that the central bank was independent from any political constraints and determined to tackle price rises.

The lira rallied by as much as 1.5% to 31.91 against the dollar in response to the hike from the previous 45% rate, reversing weeks of steady declines in the Turkish currency, and Turkey’s dollar bonds extended a rally.

you are viewing a single comment's thread
view the rest of the comments
[–] autotldr@lemmings.world 2 points 7 months ago

This is the best summary I could come up with:


The hawkish move came 10 days before local elections and was seen by analysts as a signal that the central bank was independent from any political constraints and determined to tackle price rises.

The bank has now raised its key one-week repo rate by 41.5 percentage points from 8.5% since last June, after Recep Tayyip Erdoğan’s victory in May presidential elections and U-turn towards greater orthodoxy in economic policy.

The “tight monetary stance will be maintained until a significant and sustained decline in the underlying trend of monthly inflation is observed, and inflation expectations converge to the projected forecast range”, the bank said.

Piotr Matys, the senior FX analyst at InTouch Capital Markets in London, said the rate hike “stunned the market”, adding: “Today’s decision is a very strong signal that Governor [Fatih] Karahan, who took over from [Hafize Gaye] Erkan when she unexpectedly resigned, is determined to bring staggeringly high inflation under control.”

Inflation rose to a higher than expected 67% in February when the central bank had held rates steady after a sustained string of hikes since June.

Though inflation is expected to dip around mid-year, the recent lira slide coupled with declining foreign reserves had raised some expectations of more rate hikes ahead – though not until after municipal elections on 31 March in which Erdoğan’s AK party is hoping to win back key cities such as Istanbul.


The original article contains 355 words, the summary contains 231 words. Saved 35%. I'm a bot and I'm open source!