May Day

May Day

Theresa May launched a multi-billion pound spending spree

Read more
Trained to be a Duchess

Trained to be a Duchess

Meghan Markle Was 'Trained to Be Personable' Before She Became a Duchess

Read more
A New Man Utd Deal?

A New Man Utd Deal?

Manchester United are likely to revive their £100million move for Dortmund star Jadon Sancho

Read more
Homepage / Business / Turkish lira crisis: Interest rates slashed in desperate attempt to avoid recession
Royal fury: How Prince William was dubbed ‘scallywag’ after going missing from Highgrove Man City news and transfers LIVE early team news for Crystal Palace fixture as Stones and De Bruyne set to return The Manchester United player who can decide Liverpool FC fixture Manchester United news and transfers LIVE De Gea and Pogba injury latest ahead of Liverpool FC fixture Furious Melania Trump fans hit out comparing her to Meghan Markle on social media Meghan Markle receives outpouring of support after heartbreaking interview Kate Middleton opens her heart during rare interview on Pakistan visit Johnson ‘close’ to reaching numbers for historic deal Absent TD voted six times in Dáil Meghan Markle and Harry were ‘wrong’ to hide Archie away – ‘What have they got to hide?’ Ole Gunnar Solskjaer tells his Man Utd side to take more risks to beat Liverpool Real Madrid boss Zinedine Zidane lifts lid on meeting Man Utd star Paul Pogba in Dubai Bride and groom struck down with salmonella poisoning at their wedding Monster who had six kids with own daughter raped child he fathered with her Bigg Boss 13 Day 19 Twitter reactions: Fans praise Asim Riaz for his performance in the task Bigg Boss 13 Day 19 Live updates: Bigg Boss stop the task as no housemate is ready to give up Kundali Bhagya 18 October 2019 written update of full episode: Karan notices Preeta in Mahesh’s room Pound US Dollar exchange rate: GBP/USD rangebound ahead of fourth “meaningful vote” Pound euro exchange rate steady as Merkel says extension unavoidable if deal fails Pension UK: These divorcees face being £77,000 worse-off – what are you entitled to? Text scam warning: Worrying message could cost you £20 – have you had the suspicious text? Watch A Bunch Of Scientists Freak Out Over A ‘Whale Fall’ On The Bottom Of The Ocean Universal Credit – will amount rise? How much benefits could increase by in 2020 Ujda Chaman song Twinkle Twinkle song: Sunny Singh and Maanvi Gagroo’s song fails to impress Satellite Shankar trailer: Sooraj Pancholi is back with a patriotic drama that looks decent Violent scenes show angry commuters drag Extinction Rebellion protester from top of tube train onto platform Kasautii Zindagii Kay 2: Pooja Banerjee gets emotional on receiving a warm welcome post her injury Drug deaths in Scotland hit more than 550 over last six months State pension age rises next month – will you be affected by state pension age changes? Lidl to help shoppers buy more British produce as it invests £15bn in suppliers EU-UK deal pretty much done, awaits UK government approval – EU sources Pound US dollar exchange rate: GBP/USD rises on hopes for a Brexit extension Friend of alleged rape victim says she heard woman moaning and saying the word ‘harder’ during sex, court told Princess Eugenie reveals heartwarming nickname for mum Fergie in emotional Instagram post Princess Eugenie’s surprise confession as she admits what her favourite radio station is Man Utd plan to explore transfers for five players in January but know they could fail Man Utd suffer David De Gea injury blow just days before Liverpool Premier League clash Kate Middleton caught in embarrassing royal faux pas on first day of Pakistan tour – VIDEO Prince Harry breaks down into tears mid-speech as he recalls Meghan Markle pregnancy news Kate Middleton snub: William under fire for ‘gentleman’ protocol breach with rickshaw ride Manchester United news and transfers RECAP David de Gea injured for Spain and Paul Pogba injury news Edwin van der Sar reveals he could have joined Liverpool FC before signing for Manchester United Man City news and transfers RECAP Sterling latest plus De Bruyne, Aguero and Stones injury update Coinbase chief blasts US Senate over Libra letters Nicola Sturgeon to demand second Scottish independence referendum next year Housefull 4: Akshay Kumar, Bobby Deol caught sleeping on the sets in this BTS video Local shop is trashed in ‘ram raid’ robbery attempt Guddan Tumse Na Ho Payega 15 October 2019 Written Update of full episode: Guddan to change her name to Antara for Alisha Thor: Love and Thunder director makes a huge revelation about Natalie Portman’s character Brexit alert: No deal could spark global financial crisis, warn economic experts How much is the new state pension? What is required to get the full amount Pound US Dollar exchange rate: Brexit sees pairing slump more than 1 percent ‘We feel that’s pretty strange’ – Johnny Sexton hits out at ‘negativity’ around Ireland’s World Cup campaign Taoiseach told snap election must follow a deal on Brexit SNP has taken significant step in tackling Scotland’s horrendous drug-death toll Toofan: Farhan Akhtar suffers a ‘hairline fracture’ while shooting for the film – view pic Islamic State supporters escape Kurdish camp in Syria as Turkish forces advance Dolittle Trailer: The Robert Downey Jr starrer looks like a joyride for kids and adults alike Housefull 4 star Pooja Hedge takes a day off on her birthday to spend time with her closed ones Retirement and me: Man reveals struggle as he explains ‘I’ve no intention of retirement’ Huge emergency services response after man was stabbed in Piccadilly Gardens State pension age change: Hope for 50s women as tens of thousands raised to fight scandal Princess Margaret: Unearthed letter reveals Peter Townsend split not all as it seemed Royal shock: The huge role Prince Louis will take on next year revealed – ‘He’s ready’ Meghan Markle book ‘in the offing’ as feared biographer reveals new plans Man Utd fans all say the same thing after last-minute Kepa horror show against Norway Man Utd reach verbal agreement with Mario Mandzukic as Juventus make demand – EXCLUSIVE The Chase star Jenny Ryan stuns with her big voice on Celebrity X Factor Doggy friends of stolen Boston Terrier Ralph join campaign to ‘bring him home’ Prince William reveals secret passion he inherited from Charles – ‘It’s deep in my heart’ Sonu Ke Titu Ki Sweety actors Kartik Aaryan and Sunny Singh reunite for Pati Patni Aur Woh Gel Manicures Look Good, But What’s The Damage To Your Nails? Bigg Boss 13: Who is the biggest player between Devoleena and Paras? Vote now! Kumkum Bhagya 12 October 2019 Preview: Abhi determines to put Rishi behind bars Prince William surprises England fans by watching Czech Republic football game in pub Scots rugby fans slam chiefs after Japan matches cancelled due to typhoon season Scot travels 540 miles to save lamb she ‘regretted selling for slaughter’ Rúaidhrí O’Connor: ‘Joe Schmidt’s legacy is on the line – Ireland owe it to themselves to win well’ Pound Euro exchange rate: GBP/EUR soars on ‘promising signals’ from Ireland Revealed: The surprising problem which may have hampered HMV’s success in the past Pound US dollar exchange rate: GBP/USD soars by 1.9 percent on UK-EU Brexit breakthrough Pound to euro latest: Pound rockets against euro and dollar after Brexit announcement ENGAGING WORKS BUSINESS LIBRARY: Ex-Waitrose chief Price launches new hub for businesses ‘DUP will oppose anything that traps Northern Ireland in the EU’ – Arlene Foster warns Raspberry picking robot points to new future for fruit and veg harvesting State pension anger: 50s women devastated after ‘abomination’ retirement age change Stamp Duty: Where first-time buyers are least likely to pay the tax – is it your town? Nawazuddin Siddiqui and Tamannaah play brother-sister in Bole Chudiyan? [Exclusive] Balloch bus assault: Police issue image of man Third man arrested over death of security guard dad at Lanarkshire building site Bigg Boss 13 Day 11: Rashami Desai and Koena Mitra to nominate Siddharth Shukla? Bigg Boss 13 Day 11: Is this THE END for Paras Chhabra and Shehnaaz Gill? Is bitcoin on the brink of COLLAPSE? Liverpool FC injury update on Alisson Becker ahead of Manchester United Premier League clash How Paul Scholes and David Beckham changed Gary Neville’s Manchester United position Pound Euro exchange rate: GBP/EUR falls as EU denies Irish backstop concession Manchester United news and transfers RECAP Man Utd fixtures latest plus Liverpool FC injury news Royal revelation: How Lady Louise ‘had no concept’ her grandmother was the Queen Royal weddings compared: The four most expensive Royal Weddings of ALL TIME – revealed Prince Charles sparked Diana’s fury with one picture of William and Harry, expert claims

Business

Turkish lira crisis: Interest rates slashed in desperate attempt to avoid recession

The reduction to 16.5 percent represents Turkey’s second aggressive cut in less than two months as it seeks to add much-needed momentum to a recession-hit economy. The bank, headed by recently-appointed Governor Murat Uysal, cited a recent fall in inflation and a global shift to easier monetary policy for the lowered benchmark one-week repo rate from 19.75 percent. Mr Uysal took over at the central bank two months ago after his predecessor was sacked by Turkish President Recep Tayyip Erdogan after they disagreed about the pace and depth of interest rate cuts.

The bank said in a statement: “At this point the current monetary policy stance, to a large part, is considered to be consistent with the projected disinflation path.”

It added the “inflation outlook continued to improve” and last month “displayed a significant fall”.

Ercan Erguzel from Morgan Stanley said further rate cuts would however be limited, maintaining his year-end policy rate forecast at 15.75 percent.

He wrote in a financial note: “We read this statement as a signal that next moves in the policy rate are more likely to be measured compared to the last two big cuts.”

But following the latest cut to interest rates, the Turkish lira rallied more then one percent against the US dollar.

This was bigger than economists predicted, but smaller than markets were pricing.

Peter Kisler, emerging market portfolio manager at North Asset Management, told the Financial Times: “Markets had actually feared something closer to 400 basis points or even more.”

The uplift in the country’s prospects have been magnified after finance minister Berat Albayrak said he believes the economy will grow on an annual basis in 2019.

READ MORE: EU crisis: France and Germany panic as steel industry crumble

Turkey’s economy slumped a less-than-expected 1.5 percent in the second quarter of this year – a third consecutive quarter of year-on-year contraction.

Before last year, Turkey’s economy had grown consistently by five percent on an annual basis but the Turkish lira crashed by more than 30 percent in 2018, sending inflation and interest rates soaring.

But despite the country’s recent economic troubles, the Turkish Government believes the distance to a recession will grow, forecasting annual growth at 2.3 percent in 2019 and 3.5 percent in 2020.

Speaking at a European Bank for Reconstruction and Development (EBRD) event in Istanbul, Mr Albayrak attempted to paint a bright future for Turkey’s economy.

DON’T MISS
Brexit uncertainty sparks recession panic as economy falters [ANALYSIS]
EU takes on Trump: Tusk issues warning to US trade war [COMMENT]
Trump warned Turkey punishment could ‘hand Middle East to China’ [INSIGHT]

He said Government economic rebalancing was close to the desired level, and that inflation would fall to single digits.

The finance minister told an audience: “September indexes clearly show that we will post single digits in both consumer prices and producer prices.”

Mr Erdogan has been battling to arrest an alarming slump in Turkey’s economy, sparked by an ongoing and bitter global trade war with the US.

President Donald Trump has punished the country by imposing billions of dollars of tariffs on a range of products.

The Turkish leader, who has previously described himself as “allergic” to high interest rates, has continued to insist he wants the rate to come down to single digits as soon as possible.

He is eager for the country’s economy to return to previous strong growth after last year it tumbled into its first recession in more than a decade.

The Turkish economy appears to be heading in the right direction, with inflation falling in recent months, reaching 15 percent in August.

Comments are closed.