Erdogan appoints himself chairman of Turkey's sovereign wealth fund
14 September, 2018, 00:01
Brett Diment at Aberdeen Standard Investments said raising rates would put "Turkey on the slow road to recovering some monetary policy credibility, and that is critical".
In one direction it could hear the siren call of investors craving higher interest rates to draw a line in the inflationary sand and stop the lira's collapse.
The lira is down 38% against the dollar this year despite Thursday's slim gain.
The magnitude of the hike was all the more surprising given that just before the decision Erdogan had slammed interest rates as a "tool of exploitation".
In another bid to prop up the lira, Erdogan earlier on Thursday ordered by decree that property agreements in foreign currencies would not be allowed.
"It nearly seems like it's a game of "good cop, bad cop" being played out between the Turkish authorities - with President Erdogan on the one hand still making statements regarding his dislike of interest rates and. a very sizeable reaction from the centralbank in response to the recent inflationary and geopolitical developments", she said.
On Thursday, the Turkish Central Bank exercised that independence - and appeared to reassure investors in the process.
It said: "Accordingly, the committee has made a decision to implement a strong monetary tightening to support price stability".
Following the news, the Turkish lira rose 5 percent in value against the United States dollar, reversing its 42-percent fall this year against the American currency.
SUV crashes into crowd in central China, killing nine The driver of a auto that ploughed into a crowd in China, killing 11 people and injuring dozens more, has been arrested. A local government statement described the event as a "deliberate, malicious case of driving with intent to injure".
It said the policy would be "maintained decisively until inflation outlook displays a significant improvement".
Ignoring calls for restraint from President Recep Tayyip Erdoğan, the bank raised its main short-term rate from 17.5% following weeks of pressure from worldwide investors.
"Erdogan's comments clearly show that he does not support this and it becomes much more hard, if not impossible, for the Turkish central bank to tighten enough to stabilize the lira and get inflation under control", Esther Reichelt, a forex strategist at Commerzbank in Frankfurt, told DW.
Its monetary committee chose to "implement strong monetary tightening to support price stability", it said on Thursday, as it raised interest rates by 625 basis points in the face of a spike in inflation and a slump in the lira. And on the morning of the rate hike decision, Erdogan was busy.
"Obviously, it will have negative consequences on the economy but, I would say, it is less important if you have a hard landing than big corporate defaults due to a vicious cycle between (lira) depreciation and inflation", he said.
The bank's decision was announced hours after Erdogan triggered tumult by repeating his hostility to higher borrowing costs and issuing an order that limited the use of foreign currency in domestic transactions.
The US hit two Turkish ministers with sanctions over the detention of US pastor Andrew Brunson and President Donald Trump doubled steel and aluminium tariffs on Turkey.
Forecasts generally project Florence to make landfall in southeastern North Carolina on Friday as a Category 3 or 4 hurricane. For public safety, our live streams will be available to all residents of North Carolina.
Mexico, Liberia's 51-year-old president George Weah suited up for his country's team in a friendly against Nigeria . The friendly match was organized in order to retire Weah's iconic jersey number - 14.
Earlier Tuesday, President Donald Trump had reiterated his praise for the Federal Emergency Management Agency's response. That assessment brought sharp rebukes from officials in Puerto Rico and congressional Democrats .
This handset's display is only 0.1 inches larger, and that much more screen estate shouldn't dent battery life that much. OnePlus has shared that it will introduce an updated USB Type-C variant of its existing OnePlus Bullets V2 earphones.
It makes sense that Apple is now ditching the 6, as the firm typically limits its lineup to the three most recent generations. The iPhone XS has a resolution of 2436 x 1125, while the iPhone XS Max comes in at 2688 x 1242 simply due to its larger size.
But the gunman eventually tracked him down and killed him near Bear Mountain Sports , which is close to the trucking business. The husband then went to another location on Breckenridge Road where he confronted two males at a residence and shot them.
We have a relatively young team. "They are going to play that way offensively, they're going to play that way defensively. I have to be honest with you, on the plane I was reflecting on that. "We rely on that, and we didn't make them tonight".
The game follows the journey of a young man named Rush Sykes who is desperately searching for his kidnapped sister as a war rages. If those issues can be fixed, the game has a chance at a second wind with gamers who probably missed out or avoided the original.
At 4am BST Wednesday the "monster" storm was centred 670 miles southeast of Cape Fear, North Carolina, moving at 17 mph. Hurricane Sandy formed in the Atlantic in 2012, hitting Jamaica and the Bahamas as a Category 1.
Then he added, "I don't know about you, but I'm a little exhausted of that", to which the congregation responded with amens. Nike clearly made the strategic move to focus on a younger audience, hoping to latch onto that audience for years to come.
Trump tweeted Monday that he has been subjected to "Phony books, articles and T.V. "hits" like no other pol has had to endure". Woodward, an associate editor of the Washington Post called the anonymous op-ed sub-standard and undeserving of publication.
Hurricane Florence could 'kill a lot of people'
A state of emergency has also been declared in Maryland, North Carolina, South Carolina , Virginia and Washington. Hurricane conditions will likely hit the Carolina coast on Thursday night or early Friday.
Sam's Club Offers $100 Off iPhone Xs, iPhone Xs Max Buy
That's still more than the iPhone SE, however, which sold for $399, making it the cheapest iPhone the firm had sold. While iPhone sales have slowed, Apple profits have risen along with the average purchase price of its handsets.
Coutinho aware Barcelona pushing to wrap up De Jong move
Overmars, the former Arsenal forward, also claimed that Barca's offers were "unfortunate" and that they did not "value De Jong". The midfielder has put up a great performance to help Ajax to qualify for the Champions League this season.
Skripal poisoning suspects say they were tourists in UK
They are accused by the United Kingdom of trying to kill Russian ex-spy Sergei Skripal and his daughter Yulia in March. They said they may have approached Skripal's house by chance but did not know where it was located.
RIP iPhone: Apple discontinues its flagships
It is worth noting that Apple has reportedly discontinued select handsets including iPhone X , iPhone 6S and iPhone SE in the US. Arguably the most notable new product: the iPhone Xr delivers iPhone X style with a price cut and some caveats.
FDA may ban flavored e-cigarettes, cites teen use 'epidemic'
E-cigs deliver lower toxin levels than regular cigarettes, but users can inhale more of the addictive stimulant nicotine . Manufacturers offer and market e-cigarette flavors that clearly appeal to minors, including candy and bubble gum flavors.
Ericsson Signs $3.5 Billion 5G Agreement With T
On Tuesday, the nation's third largest wireless provider matched that investment through a similar agreement with Ericsson . Add it up and T-Cell is investing $7 billion in 5G between the two companies.