Turkish central bank makes massive rate hike to 12%

General Forum

Moderators: PoshinDevon, Soner, Dragon

Post Reply
Munchkin
Kibkommer
Kibkommer
Posts: 210
Joined: Sat 27 Oct 2012 7:22 pm

Turkish central bank makes massive rate hike to 12%

  • Quote
  •   Message 1 of 12 in Discussion

Post by Munchkin »

The bank raised its overnight lending rate to 12 percent from 7.75 percent

http://www.todayszaman.com/news-337889- ... -fall.html

User avatar
Philoz
Kibkommer
Kibkommer
Posts: 1168
Joined: Sat 14 Jul 2012 10:33 pm

Re: Turkish central bank makes massive rate hike to 12%

  • Quote
  •   Message 2 of 12 in Discussion

Post by Philoz »

Feeling slightly smug this morning -I correctly predicted this rise,and the timing of it in a post on this thread last September-

http://www.kibkomnorthcyprusforum.com/v ... =27&t=9883.

chelwood
Kibkommer
Kibkommer
Posts: 84
Joined: Wed 09 May 2012 8:14 am

Re: Turkish central bank makes massive rate hike to 12%

  • Quote
  •   Message 3 of 12 in Discussion

Post by chelwood »

very very happy with this latest move which will reward savers .

scubadubaqueen
Kibkommer
Kibkommer
Posts: 126
Joined: Mon 23 Sep 2013 8:20 pm

Re: Turkish central bank makes massive rate hike to 12%

  • Quote
  •   Message 4 of 12 in Discussion

Post by scubadubaqueen »

Not sure I would be feeling so smug, as according to "A Reuters poll of 31 economists on Monday found a consensus pointing to a 2.25 point rise in the lending rate. Only one forecast a move this dramatic" per the original link on this thread, which is the exact same cautious figure that you too mentioned last September.

However, for every £100k that you say changed to TL at a pretty average rate previously of 2.8 to the £, would only be worth £73k ish if you changed it back to sterling again at say 3.8TL to the £. It has rallied a bit now towards 3.7, but a few days ago I believe it hit over 3.9!

All I can say is that I am now glad my UK house sale fell though last summer, because at London Prices I think I would be suicidal by now had I changed the Sterling to Lira for the higher interest. I certainly would not be feeling smug! My heart goes out to so many who have their money in TL right now having been attracted by the higher interest rates, but no amount of high interest rate is going to make up those kind of losses!

Art
Kibkommer
Kibkommer
Posts: 855
Joined: Thu 24 May 2012 1:05 pm

Re: Turkish central bank makes massive rate hike to 12%

  • Quote
  •   Message 5 of 12 in Discussion

Post by Art »

At the moment it's only had a slight impact on the value of the lire and a 5% increase may not be enough to satisfy the money men!

Keep a cool head!

Stormy waters ahead!

chelwood
Kibkommer
Kibkommer
Posts: 84
Joined: Wed 09 May 2012 8:14 am

Re: Turkish central bank makes massive rate hike to 12%

  • Quote
  •   Message 6 of 12 in Discussion

Post by chelwood »

not quite sure what certain posters are on about saying people losing money , your only losing money if you want to move back to sterling , on paper I am nearly 500k down on what I invested in liro if I wanted to switch back to sterling as I am not what does it matter , it only effects those who want to change back to sterling , and if like me you have a modicum of sense you will balance the books by having money in sterling to start with .

well done to turkey for doing what was needed .


goody
Kibkommer
Kibkommer
Posts: 63
Joined: Sun 06 Oct 2013 8:14 am

Re: Turkish central bank makes massive rate hike to 12%

  • Quote
  •   Message 7 of 12 in Discussion

Post by goody »

3.677 right now !

JBA
Kibkommer
Kibkommer
Posts: 483
Joined: Mon 23 Jul 2012 12:57 pm

Re: Turkish central bank makes massive rate hike to 12%

  • Quote
  •   Message 8 of 12 in Discussion

Post by JBA »

Chelwood is absolutely right - nobody loses until they chicken out or are forced by circumstances to change out of lira. Personally I have no need to change back to sterling or any other currency. I have in the bank exactly the same lira savings as I had 6 months ago except that I now have the prospect of much higher interest on those savings. I don't believe for a moment that Turkey will allow the lira to stay at these levels for the longer term, the only reason they have waited so long to put up interest rates is the elections planned for March. Turkey is a net importer and the current levels do considerable harm to their economy.

On the other hand I derive considerable short term benefit from these levels because my pensions, paid in sterling, produce much higher lira returns each month. The surplus is happily added to my lira savings in the knowledge that they will one day be worth a lot more sterling than now - should I ever have need to change back..

Bert
Kibkommer
Kibkommer
Posts: 924
Joined: Mon 27 Aug 2012 10:13 am

Re: Turkish central bank makes massive rate hike to 12%

  • Quote
  •   Message 9 of 12 in Discussion

Post by Bert »

It doesn't make too much sense to me for interest rates ( savings) to be raised more than a point or two?????

TRNCVaughan
Kibkommer
Kibkommer
Posts: 1013
Joined: Tue 03 Apr 2012 7:46 pm

Re: Turkish central bank makes massive rate hike to 12%

  • Quote
  •   Message 10 of 12 in Discussion

Post by TRNCVaughan »

the dow jones is also entering a pullback phase. this will put more pressure on emerging markets like turkey so get ready for more sterling appreciation against the lira

Munchkin
Kibkommer
Kibkommer
Posts: 210
Joined: Sat 27 Oct 2012 7:22 pm

Re: Turkish central bank makes massive rate hike to 12%

  • Quote
  •   Message 11 of 12 in Discussion

Post by Munchkin »

Federal Reserve sticks with $10bn taper

No mention of emerging market turmoil at final Bernanke meeting.


Not very good news for emerging markets.

MVP
Kibkommer
Kibkommer
Posts: 255
Joined: Tue 09 Oct 2012 6:35 am

Re: Turkish central bank makes massive rate hike to 12%

  • Quote
  •   Message 12 of 12 in Discussion

Post by MVP »

The Turkish government can not hold back the tide - just waste money trying to

Post Reply

Return to “THE KIBKOM NORTH CYPRUS FORUM”