This week – June 10 through June 16 – central banks from 11 countries or jurisdictions are scheduled to decide on monetary policy: Argentina, Iceland, Georgia, Namibia, United States, Chile, euro area, Uganda, Azerbaijan, Japan and Russia. Following table includes the name of the country, the date of the next policy decision, the current policy rate, the result of the last policy decision, the change in the policy rate year phase de consolidation forex news date, the rate one year ago, and the country’s MSCI classification.
Turkey’s central bank raised its new benchmark one-week repo rate by a further 125 basis points to 17. 75 percent said it would tighten monetary policy further until there is a “significant improvement” in the outlook for inflation. The CBRT has now raised its key rate by 975 basis points in less than 2 weeks and traders immediately pushed up the exchange rate of the lira by 2. The lira had come under sustained pressure, and is still more than 15 percent lower than at the start of this year, after statements by President Tayyip Erdogan – who lauds himself as an enemy of interest rates – that he would exert greater control over the central bank if he wins the presidential elections on June 24. After days of high-level discussions, the central bank on May 23 raised its late liquidity lending rate by 300 basis points at an extraordinary meeting of its monetary policy committee and then on May 28 announced the change in its operational framework.
This was followed by meetings in London between major investors, the central bank governor and the deputy prime minister, which appeared to restore some calm to capital flows. Today’s rate hike at the regularly scheduled committee meeting was widely expected by analysts following news this week that inflation jumped to 12. 15 percent in May from 10. 85 percent, putting pressure on Turkish assets.
The Central Bank will continue to use all available instruments in pursuit of the price stability objective,” the CBRT said, adding that it is closely monitoring inflation expectations, the behavior of prices and other factors that affect inflation and will tighten monetary policy further if needed. A tight stance in monetary policy will be maintained decisively until the inflation outlook displays a significant improvement,” it added. India’s central bank raised its policy repo rate by 25 basis points to 6. 25 percent, as expected by roughly half of analysts, citing “major upside risks” inflation after the “abrupt acceleration” of underlying inflation in April that triggered higher inflation expectations.