Latest news with #MonetaryPolicy
Zawya
3 days ago
- Business
- Zawya
Turkey's economy grew 2.0% in first quarter, below forecasts
Turkey's economy expanded 2.0% in the first quarter of the year, below expectations, official data showed on Friday. First-quarter gross domestic product (GDP) grew 1.0% from the previous quarter on a seasonally and calendar-adjusted basis, data from the Turkish Statistical Institute showed. In a Reuters poll, the economy was forecast to have expanded 2.3% in the first quarter. Turkey's economy had grown 3.0% year-on-year in the fourth quarter of 2024, bringing full-year growth to 3.2% and exceeding forecasts despite the weight of high interest rates. Economists forecast an expansion of 3% in 2025 as a whole, slightly lower than last year, the poll showed, reflecting the effects of monetary tightening. In December, the central bank started an easing cycle after having kept the main policy rate steady at 50% for eight months. Inflation has dipped from as high as 75% last May. In April, Turkey's central bank hiked its policy rate by 350 basis points and raised the lending rate to 49% in response to market turmoil that erupted over the arrest of Istanbul Mayor Ekrem Imamoglu, President Tayyip Erdogan's main political rival. (Reporting by Canan Sevgili in Gdansk; Editing by Tuvan Gumrukcu and Jamie Freed)
Reuters
3 days ago
- Business
- Reuters
Turkey's economy grew 2.0% in first quarter, below forecasts
May 30 (Reuters) - Turkey's economy expanded 2.0% in the first quarter of the year, below expectations, official data showed on Friday. First-quarter gross domestic product (GDP) grew 1.0% from the previous quarter on a seasonally and calendar-adjusted basis, data from the Turkish Statistical Institute showed. In a Reuters poll, the economy was forecast to have expanded 2.3% in the first quarter. Turkey's economy had grown 3.0% year-on-year in the fourth quarter of 2024, bringing full-year growth to 3.2% and exceeding forecasts despite the weight of high interest rates. Economists forecast an expansion of 3% in 2025 as a whole, slightly lower than last year, the poll showed, reflecting the effects of monetary tightening. In December, the central bank started an easing cycle after having kept the main policy rate steady at 50% for eight months. Inflation has dipped from as high as 75% last May. In April, Turkey's central bank hiked its policy rate by 350 basis points and raised the lending rate to 49% in response to market turmoil that erupted over the arrest of Istanbul Mayor Ekrem Imamoglu, President Tayyip Erdogan's main political rival.
Reuters
4 days ago
- Business
- Reuters
South African central bank cuts key rate with inflation well-contained
PRETORIA, May 29 (Reuters) - South Africa's central bank cut its main interest rate by 25 basis points to 7.25% on Thursday, after inflation came in below its target range for a second consecutive month. The decision by the central bank's Monetary Policy Committee (MPC) was split, with five members preferring 25 basis point reduction and one favouring a 50 basis point cut. Economists polled by Reuters had predicted a close call, as the bank's MPC is known for its cautious approach. Price pressures are well under control in Africa's biggest economy, with headline consumer inflation (ZACPIY=ECI), opens new tab at 2.8% year on year in April, undershooting the central bank's target range of 3% to 6%. The South African Reserve Bank maintained its policy rate at 7.50% at its last meeting in March, citing risks from U.S. President Donald Trump's global trade war and uncertainty surrounding the country's budget. Those concerns have since partially eased, with Trump suspending his so-called reciprocal tariffs against South Africa and other countries and the local ruling coalition finding common ground on the budget.
Bloomberg
4 days ago
- Business
- Bloomberg
New Zealand's Governor Hawkesby On Economic Outlook
Reserve Bank of New Zealand's Governor Christian Hawkesby speaks on Bloomberg TV about New Zealand's economic outlook and the impact of global economic uncertainty. He speaks the same week as the central bank's Monetary Policy Committee lowered the Official Cash Rate by 25 basis points to 3.25%, as expected by most economists. (Source: Bloomberg)
Zawya
23-05-2025
- Business
- Zawya
Nigeria: CBN's retention of 27.5% MPR disappointing, but logical says NACCIMA chairman
The National President of the Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA), Dele Kelvin Oye Esq., has said while the Central Bank of Nigeria's (CBN) retention of 27.5 percent of the Monetary Policy Rate (MPR) is disappointing for industry players, it is a logical response to the prevailing conditions of liquidity management and the bank's current net borrowing status. In a statement in response of CBN's Orthodox Monetary Policy shift, Oye, who is also the Chairman of the Organised Private Sector of Nigeria (OPSN) noted that the repercussions of the policy, particularly in the form of elevated interest rates, inhibit the industry's ability to secure loans at single-digit rates that are essential for sustainable growth and the alleviation of poverty. According to him, 'The Central Bank of Nigeria's (CBN) transition back to orthodox monetary policy marks a significant moment in our economic landscape. While the persistence of the Monetary Policy Rate (MPR) at 27.5% is disappointing for industry players (Nigerian Private), it is a logical response to the prevailing conditions of liquidity management and the bank's current net borrowing status.' He continued: 'The CBN's recent financial disclosures reveal a complex interplay of modest gains in reserve buffers and a troubling escalation in liquidity management costs. The resurgence of orthodox monetary policies signifies an intention to restore market discipline and enhance the credibility of monetary interventions. 'Yet, as we applaud these strides toward improved transparency and inflation targeting, it is imperative to address the pressing need for accessible financing through fiscal policies, particularly for the private sector, especially against the background of the world bank's recent warning on Nigeria's growing poverty.' The OPSN chairman noted, 'NACCIMA recognizes that businesses are currently grappling with exorbitant borrowing costs that stifle growth and innovation. The CBN's strategy, characterized by a retreat from direct financing of fiscal deficits, has been a necessary recalibration. 'However, the repercussions of this policy, particularly in the form of elevated interest rates, inhibit the industry's ability to secure loans at single-digit rates that are essential for sustainable growth and the alleviation of poverty. 'It is commendable that our collective advocacy for reduced public sector borrowing at the subnational level has yielded tangible results, as evidenced by the notable repayment figures reported by the CBN. Such progress underscores the importance of fiscal discipline, yet it also points to the urgent need for a synchronized approach between monetary policy and economic growth. 'The CBN's commitment to restoring fiscal prudence must be accompanied by measures that rempote a conducive environment for private sector investment and growth. 'While the CBN's financial results showcase an incremental improvement in its asset composition, they also reveal a precarious situation marked by spiraling liquidity management costs and significant losses from derivative settlements. 'These challenges threaten to obscure the hard-won gains achieved through the recent policy shift. As the economic landscape evolves, we anticipate that the CBN will leverage the potential of the projected 2024 trading surplus to transition to a net saving position. In so doing, it may facilitate a reduction in the MPR, thereby alleviating the current pressures on businesses seeking reasonably priced loans.' Oye added, 'NACCIMA stands ready to collaborate closely with the CBN and government at all levels to contribute private sector insights that can enhance the monetary and fiscal climate. Our objective is to establish an investment ecosystem that not only supports reasonable access to capital but also promotes educational financing essential for developing a skilled workforce. 'In conclusion, while we acknowledge the strides made towards a more orthodox monetary framework, we urge the CBN to remain vigilant against the strains of past interventions. A harmonious alignment of fiscal and monetary policies is imperative to ensure a stable economic trajectory. Only through proactive dialogue and collaboration with the private sector can we navigate the complexities of our economic environment to enhance sustainable growth and prosperity for all stakeholders.'
