ANKARA — Turkey’s Central Bank, in a unexpected move, hiked interest rates Thursday by another 500 basis points, from 45% to 50%.

The monetary policy committee cited a “higher than expected” surge in the country’s year-on-year inflation last month, which hit almost 70%. The embattled Turkish lira strengthened immediately after the surprise announcement, trading more than 1% up on the day at 14:30 p.m. local time.

“Recent indicators imply that domestic demand remains resilient,” the bank said in a statement.

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Source: https://www.al-monitor.com/originals/2024/03/surprise-move-turkeys-central-bank-hikes-interest-rates-50

The post In surprise move, Turkey’s Central Bank hikes interest rates to 50% first appeared on Garner Ted Armstrong Evangelistic Association.

The decision is “a demonstration of the Kingdom of Saudi Arabia’s commitment to supporting Turkey’s efforts to strengthen its economy,” the statement said.

The news comes as Turkey struggles with an economy battered by years of high inflation and a recent series of devastating earthquakes that killed more than 46,000 people and left millions homeless.

Turkey’s inflation is still above 55%, and its currency is hovering near record lows against the dollar after several years of policy intervention by Turkish President Recep Tayyip Erdogan, who resisted raising interest rates despite mounting inflation.

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Source: https://www.cnbc.com/2023/03/06/saudi-arabia-deposits-5-billion-in-turkeys-central-bank.html

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The post Saudi Arabia drops $5 billion in Turkey’s central bank to help its struggling economy first appeared on Garner Ted Armstrong Evangelistic Association.

“In the upcoming months, in light of the cumulative tightening we have achieved, I expect we will slow the pace of our rate hikes as we approach a sufficiently restrictive stance,” Harker said Thursday in the text of his remarks to the Risk Management Association’s Philadelphia chapter. “But I want to be clear: A rate hike of 50 basis points would still be significant.”

Harker, in his prepared remarks, didn’t reference the most recent consumer price index report. The data released earlier on Thursday showed prices rising 7.7% for year ending October versus 8.2% for September. Minus food and energy, price increases cooled off to a 6.3% pace versus 6.6%.

Fed officials are aggressively raising borrowing costs in an effort to tame inflation running near 40-year highs. The US central bank hiked interest rates by 75 basis points for the fourth straight time last week, bringing the target for the benchmark rate to a range of 3.75% to 4%.

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Source: https://www.bnnbloomberg.ca/fed-s-harker-expects-pace-of-rate-hikes-to-slow-in-months-ahead-1.1844491#:~:text=

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The post Fed’s Harker Expects Pace of Rate Hikes to Slow in Months Ahead first appeared on Garner Ted Armstrong Evangelistic Association.