Turkey Raises Interest Rates By 1.75%

[karhu]

http://news.moneycentral.msn.com/provider/...0607&ID=5779171

ANKARA, Turkey (AP) - Turkey's Central Bank on Wednesday raised interest rates by 1.75 percent amid higher-than-expected inflation figures in May, the first rate hike in almost five years.

The Central Bank announced it was raising rates to 15 percent.

[tahoma]

http://news.moneycentral.msn.com/provider/...0607&ID=5779171

I was in Turkey for a month during their last period of hyperinflation... I remember the chalk boards outside the exchange centres with the latest multi-zero Lira exchange rate. I think it was 46'000 when I got there, and 51,000 when I left.

No wonder they are trigger happy on interest rates.

Edited June 7, 2006 by tahoma

[nodumsunreader]

http://news.moneycentral.msn.com/provider/...0607&ID=5779171

I went on holiday to Turkey in 1994 and again in 1996. After the first holiday, I had a few thousand Turkish lire left and took it back the next time I went in 1996. What would have bought a nice meal for 2 in 1994 just about bought a bus ticket to the beach 2 years later. Seems as though the Turks are sorting things out if their IR's are only 15% now.

Edited June 7, 2006 by nodumsunreader

[sithclone7]

This was mentioned on BBC News this morning 6:30AM as a big thing, But strangely this item dissappeared, No more references throughout the day.

Is this something significant that gets put out at drowsy early morning staring at the cornflakes was that a dream time.

Or are turkey Sh1ting themselves due to some information not yet disclosed to the media.

Some links for the more enlightened to digest.

Bloomberg Ver

Yahoo Ver

[Surrey cash buyer]

This was mentioned on BBC News this morning 6:30AM as a big thing, But strangely this item dissappeared, No more references throughout the day.

Is this something significant that gets put out at drowsy early morning staring at the cornflakes was that a dream time.

Or are turkey Sh1ting themselves due to some information not yet disclosed to the media.

Some links for the more enlightened to digest.

Bloomberg Ver

Yahoo Ver

Also this from Bloomberg

[Pablo-silver or lead?]

They'd better keep it quiet as they want to Join EEC and the Euro.

One size fits all, I don't think so as Ireland's are about to find out. Ireland needed rates of 5% 2 years ago to prevent the

unsustainable property bubble from developing. Now it's here it WILL go pop.

Pablo Silver or Lead?

[boom_and_bust]

Hi,

We're OK though, it's the rest of the world who are one-by-one getting it wrong. There is a new paradigm here, a miracle economy in the UK based on a virtuos circle of house price rises feeding economic growth and then more house price and more growth and so on., If only they would learn, particularly those 'slow-lane' eurocrats over the channel. As house prices continue to rise and fuel economic growth, we will have plenty let over to settle the debts. It's different here because it is a small island with a big population and they are not making land anymore, don't you know, so the only way is up from now on. More growth, more virtuos cycles and the price of Hamsters, saxophones and Ipods imported from China is only going down in the future, just like the price of oil, so inflation will never rear it's head ever again.

[sithclone7]

Looks like Turkey's had a long battle with inflation and Ir's, but has managed in recent years while the US/Global economy has done well to lower I and Ir.

However the game is changing, Maybe Turkey is a perceptive indicator of global problems to come ?

An earlier thread tonight poo pooed the American Ir rate increases and Inflation as irrelevant to the Uk and the rest of the world, Asking for a direct link.

I am still making order out of chaos by reinvention.

John Le Carre

They'd better keep it quiet as they want to Join EEC and the Euro.

One size fits all, I don't think so as Ireland's are about to find out. Ireland needed rates of 5% 2 years ago to prevent the

unsustainable property bubble from developing. Now it's here it WILL go pop.

Pablo Silver or Lead?

Ireland is so Ficked.

Watching America and taking the money from Europe, Laughing all the way to the bank.

Nothing's free in life and I can hear the sound of A-holes tightening as they watch the US market crash and nervously glance over their shoulders at the EU creditors.

Ireland will be the first and big !, This will be like a cat amongst the pidgeons for the UK market and cause a domino effect accross Europe.

It's going to be fun to watch, Strap yourself in.

To quote the lovely girly Irish band of yesteryear "Life is a RollerCoaster".

"C'mon, C'mon, So C'mon your living on a roll er coaster"

Edit: Speling and Lyrics.

Edited June 7, 2006 by SithClone7

[Surrey cash buyer]

I would like to understand what caused the increase in inflation and why it happened now.

Is this caused by carry trade unwinding??

ie, carry trade helped to hold up value of lira. When it started to unwind lira fell in value leading to imported inflation. Only way to correct this is to support the currency with an ir rise. Am I correct?

[Gel]

I would like to understand what caused the increase in inflation and why it happened now.

Is this caused by carry trade unwinding??

ie, carry trade helped to hold up value of lira. When it started to unwind lira fell in value leading to imported inflation. Only way to correct this is to support the currency with an ir rise. Am I correct?

Second to that...should we be buying Liras lol.

Edited June 8, 2006 by Gel

[Robbrent]

I was in Turkey last year (going again this year) great place great people, however I read they were the new miracle just like Ireland and Spain, just like the Pac Rim countries were before anyone realised that it was all based on fraud

[gfromls]

I was in Turkey last year (going again this year) great place great people, however I read they were the new miracle just like Ireland and Spain, just like the Pac Rim countries were before anyone realised that it was all based on fraud

"great place great poeple"

[Robbrent]

"great place great poeple"

It's Turkish