Turkish central bank raises lending rate to 12% / Financial turmoil hits emerging economies

Author (Corporate)
Series Title
Series Details 28.01.14
Publication Date 28/01/2014
Content Type

The Turkish central bank raised its overnight lending rate to 12% from 7.75% after an emergency meeting on the 28 January 2014.

The move was said to have faced opposition from Prime Minister Tayyip Erdogan. Keen to maintain economic growth ahead of elections in the spring of 2014, Mr Erdogan had been a vociferous opponent of higher borrowing costs, railing against what he describes as an 'interest rate lobby' of speculators seeking to stifle growth and undermine the economy.

Investors sought out the safe havens of German bonds and the Swiss franc on the 29 January 2014 after deep splits in Turkey over the interest rate increases meant only the briefest of respites from the escalating crisis in global emerging markets.

Source Link Link to Main Source http://www.bbc.co.uk/news/business-25939187
Related Links
Reuters, 28.01.14: Turkish central bank makes massive rate hikes to stem lira fall http://www.reuters.com/article/2014/01/28/us-turkey-centralbank-rates-idUSBREA0R1W420140128
Website: Central Bank of the Republic of Turkey http://www.tcmb.gov.tr/yeni/eng/
TCMB: Press Release, 28.01.14: Press Release on Interest Rates http://www.tcmb.gov.tr/yeni/announce/2014/ANO2014-06.php
TCMB: Press Release, 28.01.14: Open Letter Written to the Government Pursuant to Article 42 of the Central Bank Law http://www.tcmb.gov.tr/yeni/announce/2014/ANO2014-05.php
TCMB: Press Release, 28.01.14: Press Release on Summary of the Monetary Policy Committee Meeting http://www.tcmb.gov.tr/yeni/announce/2014/ANO2014-04.php
TCMB: Press Release, 29.01.14: Ending the Additional Monetary Tightening Policy http://www.tcmb.gov.tr/yeni/announce/2014/ANO2014-07.htm
Hurriyet Daily News, 29.01.14: Turkey's Central Bank makes massive rate hikes to stem Lira fall http://www.hurriyetdailynews.com/turkeys-central-bank-makes-massive-rate-hikes-to-stem-lira-fall.aspx?pageID=238&nID=61699&NewsCatID=344
Website: Turkish Statistical Institute http://www.turkstat.gov.tr/Start.do
Deutsche Welle, 29.01.14: Turkey's central bank raises its key interest rate http://dw.de/p/1Ayhn
The Guardian, 29.01.14: Emerging markets crisis sees rush for safe havens http://www.theguardian.com/business/2014/jan/29/emerging-markets-crisis-rush-for-save-havens
Hurriyet Daily News, 29.01.14: Rate hike spared Turkey's credibility, threat to growth limited: Finance minister http://www.hurriyetdailynews.com/rate-hike-spared-turkeys-credibility-threat-to-growth-limited-finance-minister.aspx?pageID=238&nID=61714&NewsCatID=344
Deutsche Welle, 30.01.14: Financial turmoil hits emerging economies http://dw.de/p/1Azf1
Deutsche Welle, 31.01.14: Faltering economy in Turkey is self-inflicted http://dw.de/p/1Azsa
Taraf, 03.02.14: Erdoğan's conspiracy theories harm Turkey (via Euro|Topics) http://www.eurotopics.net/en/home/presseschau/archiv/aehnliche/archiv_article/ARTICLE137623-Erdo-an-s-conspiracy-theories-harm-Turkey
Blog: ECFR, 05.02.14: Turbulence in Turkey http://ecfr.eu/blog/entry/turbulence_in_turkey
The New York Times, 09.02.14: Turkey Struggles to Protect Its Lira http://www.nytimes.com/2014/02/10/business/international/turkey-struggles-to-protect-its-lira.html

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