{"id":121330,"date":"2021-04-15T13:23:59","date_gmt":"2021-04-15T13:23:59","guid":{"rendered":"https:\/\/precoinnews.com\/?p=121330"},"modified":"2021-04-15T13:23:59","modified_gmt":"2021-04-15T13:23:59","slug":"turkish-central-bank-holds-rates-drops-policy-pledge-under-new-chief","status":"publish","type":"post","link":"https:\/\/precoinnews.com\/business\/turkish-central-bank-holds-rates-drops-policy-pledge-under-new-chief\/","title":{"rendered":"Turkish central bank holds rates, drops policy pledge under new chief"},"content":{"rendered":"

ISTANBUL (Reuters) -Turkey\u2019s central bank held rates steady at 19% as expected on Thursday and dropped a pledge to tighten policy further if needed, in its first decision since President Tayyip Erdogan fired the hawkish former governor and sparked a market selloff.<\/p>

FILE PHOTO: Turkey’s Central Bank headquarters is seen in Ankara, Turkey in this January 24, 2014 file photo. REUTERS\/Umit Bektas <\/figcaption>

In a statement, the bank also ditched last month\u2019s pledge to \u201cdecisively\u201d maintain a tight monetary policy \u201cfor an extended period\u201d to address inflation, which has risen above 16% and been in double-digits for most of the last four years.<\/p>\n

The lira slipped as much as 0.7% to 8.125 versus the dollar after the bank under new governor Sahap Kavcioglu replaced the hawkish guidance with a softer assessment of risks to inflation that analysts said signalled interest rate cuts were on the way.<\/p>\n

Erdogan\u2019s shock removal last month of Kavcioglu\u2019s predecessor Naci Agbal, a respected policy hawk, sent foreign investors fleeing from Turkish assets on concerns that rates would be quickly slashed.<\/p>\n

But Kavcioglu – who had previously criticised Agbal\u2019s rate hikes – has since promised no abrupt changes. Those assurances as well as the more-than 10% lira selloff had convinced analysts that policy would remain steady for now.<\/p>\n

The central bank said it maintained a tight stance in the face of lofty inflation expectations, adding rates would remain above inflation until it is clear that price pressure is easing.<\/p>\n

John Hardy, FX strategy head at Saxo Bank, said the currency had weakened on Thursday because Agbal\u2019s pledges were scrapped.<\/p>\n

\u201cAny daylight they see, they are going to want to cut rates. Holding them here (today) is just an acknowledgment they can\u2019t get away with it for now,\u201d he said.<\/p>\n

In a Reuters poll, most economists had predicted no change to the one-week policy rate this week, but saw easing from around mid-year, to settle at 15% by year-end.<\/p>\n

UNORTHODOX MONETARY VIEW<\/h2>\n

Last month, the central bank under Agbal had raised rates by a more-than-expected 200 basis points to levels last touched in mid-2019 to dampen inflation and support the currency.<\/p>\n

Before taking the job, Kavcioglu had said such a policy was wrong for Turkey and also espoused Erdogan\u2019s unorthodox view that high rates cause inflation.<\/p>\n

Erdogan has repeatedly called for monetary stimulus to help the economic rebound. He has fired three bank chiefs in two years, eroding monetary credibility.<\/p>\n

The lira plunged 15% immediately after Agbal\u2019s dismissal before a rebound, and foreign investors dumped the most bonds and stocks in 15 years over the following week.<\/p>\n

Depreciation boosts inflation via imports, delaying any rate cut plans, analysts say.<\/p>\n

Inflation is expected to reach as much as 19% before mid-year. Yet few analysts see another rate hike given Erdogan\u2019s repeated calls for stimulus – including one this month for single-digit rates.<\/p>\n

The change in tone under Kavcioglu reflects \u201cpreparation being made to cut the policy rate,\u201d said Haluk Burumcekci of Istanbul-based Burumcekci Consulting.<\/p>\n

Ratings agencies say premature easing could again hammer the lira and raise risks of a balance-of-payments crisis given Turkey\u2019s depleted FX reserves and its $160 billion in short-term foreign debt.<\/p>\n

Citing sources, Reuters reported Erdogan ousted Agbal in part because he was uncomfortable with the bank\u2019s investigation into some $128 billion in FX sales undertaken during his son-in-law Berat Albayrak\u2019s stint as finance minister.<\/p>\n

Source: Read Full Article<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

ISTANBUL (Reuters) -Turkey\u2019s central bank held rates<\/p>\n","protected":false},"author":3,"featured_media":121329,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[23051],"tags":[],"yoast_head":"\nTurkish central bank holds rates, drops policy pledge under new chief - Pre Coin News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/precoinnews.com\/business\/turkish-central-bank-holds-rates-drops-policy-pledge-under-new-chief\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Turkish central bank holds rates, drops policy pledge under new chief - Pre Coin News\" \/>\n<meta property=\"og:description\" content=\"ISTANBUL (Reuters) -Turkey\u2019s central bank held rates\" \/>\n<meta property=\"og:url\" content=\"https:\/\/precoinnews.com\/business\/turkish-central-bank-holds-rates-drops-policy-pledge-under-new-chief\/\" \/>\n<meta property=\"og:site_name\" content=\"Pre Coin News\" \/>\n<meta property=\"article:published_time\" content=\"2021-04-15T13:23:59+00:00\" \/>\n<meta name=\"author\" content=\"mediabest\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:image\" content=\"https:\/\/precoinnews.com\/wp-content\/uploads\/2021\/04\/Turkish-central-bank-holds-rates-drops-policy-pledge-under-new-chief.jpg\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"mediabest\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/precoinnews.com\/business\/turkish-central-bank-holds-rates-drops-policy-pledge-under-new-chief\/\",\"url\":\"https:\/\/precoinnews.com\/business\/turkish-central-bank-holds-rates-drops-policy-pledge-under-new-chief\/\",\"name\":\"Turkish central bank holds rates, drops policy pledge under new chief - Pre Coin News\",\"isPartOf\":{\"@id\":\"https:\/\/precoinnews.com\/#website\"},\"datePublished\":\"2021-04-15T13:23:59+00:00\",\"dateModified\":\"2021-04-15T13:23:59+00:00\",\"author\":{\"@id\":\"https:\/\/precoinnews.com\/#\/schema\/person\/ad0e9920e03d3b41c7ad02a18375d76a\"},\"breadcrumb\":{\"@id\":\"https:\/\/precoinnews.com\/business\/turkish-central-bank-holds-rates-drops-policy-pledge-under-new-chief\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/precoinnews.com\/business\/turkish-central-bank-holds-rates-drops-policy-pledge-under-new-chief\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/precoinnews.com\/business\/turkish-central-bank-holds-rates-drops-policy-pledge-under-new-chief\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/precoinnews.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Business\",\"item\":\"https:\/\/precoinnews.com\/category\/business\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"Turkish central bank holds rates, drops policy pledge under new chief\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/precoinnews.com\/#website\",\"url\":\"https:\/\/precoinnews.com\/\",\"name\":\"Pre Coin News\",\"description\":\"precoinnews.com\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/precoinnews.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/precoinnews.com\/#\/schema\/person\/ad0e9920e03d3b41c7ad02a18375d76a\",\"name\":\"mediabest\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/precoinnews.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/f5f13cb3b94fc348d515c0951f6ca073?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/f5f13cb3b94fc348d515c0951f6ca073?s=96&d=mm&r=g\",\"caption\":\"mediabest\"}}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Turkish central bank holds rates, drops policy pledge under new chief - Pre Coin News","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/precoinnews.com\/business\/turkish-central-bank-holds-rates-drops-policy-pledge-under-new-chief\/","og_locale":"en_US","og_type":"article","og_title":"Turkish central bank holds rates, drops policy pledge under new chief - Pre Coin News","og_description":"ISTANBUL (Reuters) -Turkey\u2019s central bank held rates","og_url":"https:\/\/precoinnews.com\/business\/turkish-central-bank-holds-rates-drops-policy-pledge-under-new-chief\/","og_site_name":"Pre Coin News","article_published_time":"2021-04-15T13:23:59+00:00","author":"mediabest","twitter_card":"summary_large_image","twitter_image":"https:\/\/precoinnews.com\/wp-content\/uploads\/2021\/04\/Turkish-central-bank-holds-rates-drops-policy-pledge-under-new-chief.jpg","twitter_misc":{"Written by":"mediabest","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/precoinnews.com\/business\/turkish-central-bank-holds-rates-drops-policy-pledge-under-new-chief\/","url":"https:\/\/precoinnews.com\/business\/turkish-central-bank-holds-rates-drops-policy-pledge-under-new-chief\/","name":"Turkish central bank holds rates, drops policy pledge under new chief - Pre Coin News","isPartOf":{"@id":"https:\/\/precoinnews.com\/#website"},"datePublished":"2021-04-15T13:23:59+00:00","dateModified":"2021-04-15T13:23:59+00:00","author":{"@id":"https:\/\/precoinnews.com\/#\/schema\/person\/ad0e9920e03d3b41c7ad02a18375d76a"},"breadcrumb":{"@id":"https:\/\/precoinnews.com\/business\/turkish-central-bank-holds-rates-drops-policy-pledge-under-new-chief\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/precoinnews.com\/business\/turkish-central-bank-holds-rates-drops-policy-pledge-under-new-chief\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/precoinnews.com\/business\/turkish-central-bank-holds-rates-drops-policy-pledge-under-new-chief\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/precoinnews.com\/"},{"@type":"ListItem","position":2,"name":"Business","item":"https:\/\/precoinnews.com\/category\/business\/"},{"@type":"ListItem","position":3,"name":"Turkish central bank holds rates, drops policy pledge under new chief"}]},{"@type":"WebSite","@id":"https:\/\/precoinnews.com\/#website","url":"https:\/\/precoinnews.com\/","name":"Pre Coin News","description":"precoinnews.com","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/precoinnews.com\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/precoinnews.com\/#\/schema\/person\/ad0e9920e03d3b41c7ad02a18375d76a","name":"mediabest","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/precoinnews.com\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/f5f13cb3b94fc348d515c0951f6ca073?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/f5f13cb3b94fc348d515c0951f6ca073?s=96&d=mm&r=g","caption":"mediabest"}}]}},"_links":{"self":[{"href":"https:\/\/precoinnews.com\/wp-json\/wp\/v2\/posts\/121330"}],"collection":[{"href":"https:\/\/precoinnews.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/precoinnews.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/precoinnews.com\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/precoinnews.com\/wp-json\/wp\/v2\/comments?post=121330"}],"version-history":[{"count":0,"href":"https:\/\/precoinnews.com\/wp-json\/wp\/v2\/posts\/121330\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/precoinnews.com\/wp-json\/wp\/v2\/media\/121329"}],"wp:attachment":[{"href":"https:\/\/precoinnews.com\/wp-json\/wp\/v2\/media?parent=121330"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/precoinnews.com\/wp-json\/wp\/v2\/categories?post=121330"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/precoinnews.com\/wp-json\/wp\/v2\/tags?post=121330"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}