interest rates – Muhasebe News

European Central Bank Increases Interest Rates to a New 14-Year High

MuhasebeNews — Fri, 17 Mar 2023 06:49:05 +0000

As anticipated, the ECB increased interest rates by 50 basis points on Thursday in an effort to slow the persistently high inflation in the area. This brought borrowing costs to their highest level since late 2008. The banking sector in the euro area is resilient, with strong capital and liquidity positions, according to policymakers, who also stated that they were carefully observing the current market tensions and were prepared to act as needed to protect the region’s financial stability and price stability. To 3.50%, 3.75%, and 3.00%, respectively, the interest rates on the principal refinancing procedures, the marginal lending facility, and the deposit facility were all raised. Inflation will likely average 5.3% in 2023, 2.9% in 2024, and 2.1% in 2025, according to the ECB staff. Core inflation is now anticipated to average 4.6% in 2023, higher than in the December projections, and underlying price pressures are likely to stay strong.

Source: Trading Economics
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Turkish construction sector sees 2-month recovery

MuhasebeNews — Mon, 11 Nov 2019 08:00:28 +0000

Turkish construction sector sees 2-month recovery

According to the news of Hürriyet Daily News, for the first time in two years, Turkey saw increasing dynamism in its construction sector for two months in a row, a report from the Turkish Ready Mixed Concrete Association (THBB) revealed on Nov. 8.

The acceleration, which began in September and continued through October, indicates a significant recovery in the sector compared to the same period last year, according to the Ready-Mixed Concrete Index.

THBB chairman Yavuz Işık said the construction sector benefits from a period of low-interest rates in the country and greater involvement by foreign investors.

However, while all indices increased compared to October 2018, the Confidence Index rose at the slowest rate, suggesting that permanent improvement has not yet been realized.

“At times when the risk appetite and economic confidence is weakened, the sector becomes fragile,” said Işık.

He added that sector actors’ hopes would be “somewhat satisfied” by increased optimism in global trade, reduced geopolitical risks, interest rate cuts by the Turkish Central Bank and improved expectations by credit rating agencies.

“Although the effects have not yet been fully reflected, the recent interest rate cuts led to a 15% of increase in housing sales in September,” he said.

Source: Hürriyet Daily News
Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.

Eurozone Manufacturing Expands at Fastest Pace in Six Years!

MuhasebeNews — Fri, 05 May 2017 14:35:15 +0000

The eurozone manufacturing sector continued to gain momentum at the start of the second quarter. At 56.7 in April, up from 56.2 in March, the final Markit Eurozone Manufacturing PMI® rose to a six-year high. The PMI was only a tick below the earlier flash estimate of 56.8.

Commenting on the final Manufacturing PMI data, Chris Williamson, Chief Business Economist at IHS Markit said: “ Companies are benefitting from the historically weak euro, improved growth in key export markets, rising domestic demand and ongoing central bank stimulus including record-low interest rates.

Source: Markit

Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.

Decision of the Monetary Policy Committee!

MuhasebeNews — Tue, 02 May 2017 08:47:30 +0000

The Monetary Policy Committee (the Committee) has decided to set the short term interest rates at the following levels:

a) Overnight Interest Rates: Marginal Funding Rate has been kept at 9.25 percent and borrowing rate has been kept at 7.25 percent.
b) One-week repo rate has been kept at 8 percent,
c) Late Liquidity Window Interest Rates (between 4:00 p.m. – 5:00 p.m.): Borrowing rate has been kept at 0 percent, while lending rate has been increased from 11.75 percent to 12.25 percent.

Recently released data indicate a gradual recovery in the economic activity. Domestic demand conditions display a moderate improvement and demand from the European Union economies continues to contribute positively to exports. With the supportive measures and incentives provided recently, the economic activity is expected to gain further pace in the forthcoming period. The Committee assesses that the implementation of the structural reforms would contribute to the potential growth significantly.

Cost push pressures and the volatility in food prices in recent months have led to a sharp increase in inflation. Although the recent improvement in the risk appetite contains some of the upside pressures from cost factors, current elevated levels of inflation pose risks on the pricing behavior. Accordingly, the Committee decided to strengthen the monetary tightening in order to contain the deterioration in the inflation outlook.

The Central Bank will continue to use all available instruments in pursuit of the price stability objective. Tight stance in monetary policy will be maintained until inflation outlook displays a significant improvement. Inflation expectations, pricing behavior and other factors affecting inflation will be closely monitored and, if needed, further monetary tightening will be delivered.

It should be emphasized that any new data or information may lead the Committee to revise its stance.

Source: Central Bank of the Turkish Republic (Decision of the Monetary Policy Committee No: 2017-19 – Date: 26 April 2017)

FED’s New Target Has Been Revealed!

MuhasebeNews — Tue, 11 Apr 2017 08:05:36 +0000

FED Chair Janet Yellen gave informations about their new target.

Yellen has explained that they plan to raise US interest rates gradually in order to sustain healthy growth.

She also added that now that years of aggressive monetary policy easing has nursed the economy back to its current “pretty healthy” state, the aim now is to allow “the economy to kind of coast and remain on an stable state,”.

Source: Euronews