MNI BRIEF: China Visitor Mobile Payments Surge in H1

MNI China Daily Summary: Friday, July 26

MNI BRIEF: Foreign Firms Content In China

MNI BRIEF: Turkish Inflation Expectations Steady- TEBA

MNI China Press Digest July 26: Deposit Rates, Fiscal, PBOC

MNI: PBOC Net Injects CNY299.05 Bln via OMO Fri

MNI: BAKER HUGHES US RIG COUNT 589; OIL RIGS 482; GAS RIGS 101

MNI: UNIV OF MICHIGAN CONSUMER SENTIMENT FINAL JUL INDEX 66.4

EZ/UK Bond Supply Calendar: BoE Short APF Operation on Monday

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

MNI CBRT Review - June 2023: "Gradual" Tightening Cycle Begins

Executive summary:

  • The CBRT delivered a below-consensus rate hike of 650bps, taking the one-week repo rate to 15%.
  • The accompanying press release signalled the beginning of a gradual tightening cycle, one which will also involve the easing of macroprudential measures.
  • USD/TRY traded to a fresh record low on the back of the decision as state banks did not intervene to prop up the currency.
See our full review of the decision with a summary of sell-side analyst views here

MNICBRTRevJun23.pdf

The CBRT raised its one-week repo rate from 8.5% to 15%. The accompanying policy statement signalled that further monetary tightening would be delivered “as much as needed” in a “timely and gradual manner”, marking the beginning of a tightening cycle and return to more orthodox monetary policy. In addition to raising rates, the Bank signalled that macroprudential measures will be simplified in order to increase the functionality of market mechanisms. Following the decision, TRY fell to a fresh record low as state-banks did not intervene to prop up the currency.

While the CBRT were widely expected to begin their tightening cycle, the magnitude and pace of return to more conventional policy was not well-guided. Yesterday’s policy statement reveals that such a return will be “gradual”, though “tightening will be further strengthened as much as needed”. The CBRT also acknowledged a rise in the underlying trend of inflation due to the strength in domestic demand, cost pressures and stickiness of services inflation.
HomepageCEMEA Bank - ReviewCentral Bk Republic of Turkey - ReviewEM Central Bank ReportsEM Central Bank ReviewEmerging Market News

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.