CBRT made its move while we all were waiting for the Fed decision…

We’ll carefully listen to the Federal Reserve Chairman Jerome Powell’s key speech Friday at the central bank’s annual Jackson Hole symposium and try to figure out whether or not the Fed will cut rates again in September.

By the way, Fed’s July meeting minutes, where the Federal Reserve decided to cut rates for the first time in a long time since 2008 global financial crisis, are to be released today. As you may remember, Powell said, “It is not the beginning of a long series of rate cuts” at the most recent Fed meeting, following the decision to cut target interest rate 25 basis points to 2.00-2.25%.

I can easily say that Powell’s key speech Friday at the Jackson Hole symposium with the title “Challenges for Monetary Policy” this year will help us have a clear idea about the roadmap for the future of global economy. The Fed Chair’s speech will quite probably provide us with insight into whether the Federal Reserve will cut target interest rate 25 bps.

“Turkish Central Bank made the right move…”

As far as Turkey is concerned, CBRT released a pretty interesting statement Monday, according to which, Turkish Central Bank is ready to provide some advantages to those who are going to turn their funds into loans. Adjustments were made to required reserves based on loan growth rates as well as to interest rate on required reserves that are deposited with the CBRT.

Apparently, CBRT has preferred asymmetrical adjustments since lower cost of funding and higher interest rates are offered to the banks that try to grow their loan volumes according to reference ranges. Consequently, through the CBRT’s selective approach, these banks are provided with good opportunities without needing to lower policy interest rates.

I think the recently appointed CBRT Chair was talking about such practices I have just mentioned above when he said, “We’ll make the right creative choices in accordance with market conditions”. I must admit that they are indeed highly creative and encouraging as well. Well, I guess CBRT has finally decided to show us its economic growth-supporting face

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