•   
  •   

US News Turkish central bank lowers key interest rate radical than expected

17:35  21 october  2021
17:35  21 october  2021 Source:   tagesspiegel.de

Blackstone President: It's a good time to sell

 Blackstone President: It's a good time to sell the currently very liquid markets that currently do both buyers as well as sellers, offer a good opportunity to sell assets to sell. This view at least represented Jon Gray, President of the US Financial Investor Blackstone, at the Virtual Conference Bloomberg Invest Global. © Provided by finanzen.net Peter Bischoff / Getty Images • Market participant Puzzles About Tapering The Fed • Markets are currently very liquid • Experts see a good opportunity to sell The stock market is currently charact

Despite a very high inflation rate, Turkish central bank has drastically reduced its key interest rate. She apparently gives the pressure of President Recep Tayyip Erdogan.

Trotz der hohen Inflationsrate hat die türkische Notenbank ihren Leitzins drastisch gesenkt. © Karl-Josef Hildenbrand / DPA Despite the high inflation rate, Turkish central bank has drastically lowered its key interest rate.

, contrary to the general teaching, believes that the country's suffering from high inflation can be cranked with lower interest rates. As the central bank now announced on Thursday in Ankara, the key interest rate is reduced by 2.0 percentage points to 16.0 percent. Economists had only expected a reduction to 17 percent in section.

Turkey: The ambassadors of ten countries summoned after their support for Osman Kavala

 Turkey: The ambassadors of ten countries summoned after their support for Osman Kavala © Handout Anadolu Culture Center / AFP Osman Kavala has been imprisoned in Turkey since October 18, 2017. A dozen Western embassies have claimed its release. The Turkish Foreign Ministry has summoned the ambassadors of ten countries, including the United States, Germany, Canada and France, who had claimed in a common statement the release of the philanthrope Osman Kavala. The latter, regularly targeted by President Recep Tayyip Erdogan, has been imprisoned for four years.

Lira at record low

The Turkish Lira was significantly under pressure and fell to the US dollar and to the euro at record low. Turkish Lira has gained a dollar by more than 20 percent this year. The euro rose for the first time on more than 11 lira. The courses of Turkish government bonds were strongly pressurized. The Turkish stock markets turned to the minus.

After the interest rate cut, the key interest rate is even more clearly below the high inflation rate. This had been at 19.58 percent in September. Thus, the realzin, ie the key interest rate minus inflation, negative.

economists agree that the current situation speaks more for interest rate hikes. Investments in Turkish assets are now even more unattractive for investors. This also puts the Turkish currency under pressure. The weak lira also heats inflation, as imported goods become more expensive.

President Erdogan had recently released three central bankers, with whose monetary policy he did not agree. The current central bank boss Sahap Kavcioglu has only been in office since March, after the predecessor Naci Agbal was released due to interest rate hikes. Kavcioglu has now been the fourth central bank chief since 2019. All its predecessors had ultimately fallen in disgrace, because they did not support the course of a loose monetary policy preferred by Erdogan.

in Athens, Angela Merkel comes farewell to his best enemy .
© Dimitris Papamitsos / Greek Prime Minister Office / Handut / Maxppp / EPA / Maxppp Angela Merkel, Greece, Athens, Crisis, Austerity V EnerDi 29 October, Angela Merkel moves for the last time in Greece at least as official. The opportunity for the German Chancellor to balance its accounts with a country in which it is very little appreciated. According to the German tabloid Bild, "Mutti" would even be "one of the most hated women in Greece".

usr: 0
This is interesting!