3292
0
Central Bank Interest Decision Announced
Coronavirus outbreak due March meeting two days before the specified date from which the Republic of Turkey, the Central Bank had lowered
Yazar: Zack Smith
Yayınlanma: 24 Nisan 2020 22:14
Güncellenme: 6 Kasım 2024 22:59
Central Bank Interest Decision Announced
Coronavirus outbreak due March meeting two days before the specified date from which the Republic of Turkey, the Central Bank had lowered its policy rate by 100 bp to 9.75% while lowering 10,75't%. The central bank cut the weekly repo rate used as a policy rate by 100 bp at the fourth Monetary Policy Committee meeting of 2020 today and decreased the interest rate to 8.75%. Before the PPK meeting, the CBRT announced to banks in the note that “The amount of total swap sales (purchase of foreign currency at the spot by the CBRT, selling foreign currency in the term) is limited to 30% of the foreign exchange and effective markets transaction limits”. Effective markets have announced that they have increased their transaction limits from 20% to 30%. The dollar rate, which was traded at the level of 6,9750 before this decision, first reached the level of 6.99 and experienced the peak. The text of the decision was reported as follows: "Depending on the developments regarding the coronavirus epidemic, the weakening in the global growth outlook is deepening and the central banks of developed and developing countries continue to take expansionary steps. The global effects of the epidemic disease through capital flows, financial conditions, foreign trade, and commodity prices are closely monitored. Economic activity, which displayed a strong trend with the contribution of the improvement in financial conditions in January and February, started to weaken since mid-March due to the effects of the coronavirus epidemic on foreign trade, tourism, and domestic demand. Epidemics due to the development of Turkey's economy in terms of financial markets to limit the adverse effects on, the continuation of the healthy functioning of credit channels and the companies' cash flow is of paramount importance. In this context, it is considered that the monetary and fiscal measures implemented recently will contribute to the financial stability and post-epidemic recovery by supporting the production potential of the economy. The current account balance, which has shown a remarkable improvement in the recent period, is expected to follow a moderate course throughout the year with the limiting effect of commodity prices and imports. Depending on inflation expectations, domestic demand conditions, and developments in producer prices, trends in core inflation indicators are moderate. Despite the depreciation of the Turkish lira in line with global developments, the continuation of the sharp decline in international commodity prices, especially crude oil and metal prices, affects the inflation outlook positively. Although the unit cost increases related to the decrease in production and sales are followed, the inflation limiting effect of total demand conditions is expected to increase. In line with these developments, the risks of the year-end inflation forecast were considered to be downward. Within this framework, the Board has decided to cut the policy rate by 100 basis points. The Board considers that the continuation of the disinflation process is of great importance for the decline of the country's risk premium, long-term interest rates coming down and the recovery in the economy gaining strength. The cautious stance in monetary policy should be maintained in order to decrease the inflation in line with the target path. In this framework, the monetary stance will be determined in a way to ensure the continuity of the fall in inflation by considering the indicators regarding the main trend. The Central Bank will continue to use all of its tools for price stability and financial stability purposes. ”İLGİLİ HABERLER
European stocks soared and focus shifted to German retail sales after Powell's speech!
Forex Signal For TRY/USD: Inflation Slowdown in November.
Forex Signal For GBP/USD: Bullish Trend Still Not Breaking While Recovery Continues.
Forex Signal For EUR/USD: Starry US Data Points to Higher Fed Increases.
Forex Signal For BTC/USD: Downside Continues as Bitcoin Recovery Moves Less.
En Popüler Haberler
Yorum Yap
Yorumlar
Henüz yorum yapan yok! İlk yorumu siz yapın...