Just hit 3.30

[Ian]

When will RTE "give in" and reverse his policy and increase interest rates on deposits ?

Politically we know he is a "scrapper" who will not stand down of his own accord but the markets are interested in "returns" so I think this is the key question to stop the deterioration of the lira?

[JohnF]

You want the old twenty odd percent interest back again then?

JF

[Ian]

12% should do nicely - wait and see  

[JohnF]

Ah...  do I detect a note of self interest?

Generally speaking, high interest rates go hand in hand with high levels of inflation.

Low and stable inflation figures (which are better for everyone) mean low interest rates at the bank.

Ten years ago you could get ridiculous returns on your lira, only problem was that inflation was running at twenty odd percent, which was a big improvement over the previous years where it ran as high as 75/80%.

Maybe you'll get your wish, personally I hope you don't.

JF

[Ian]

It's not a wish - I am locked in until June with TEB  bonds - shows how smart I am - but it is an educated observation after reading up on the subject and my reference to 12% was based on - if it is one of the significant moves that will help stop the run on the lira and it is going to happen - then let it be manageable.

PS I wouldn't want to only be getting 9% when more is available - would I?

See reference to Investors and the quote from the man from The Pru - Citibank

http://www.todayszaman.com/news-335521-.html

[SuziQ]

With all this talk and changes to the rate can I ask opinions  - I am thinking of transferring my holiday spending Money for this year over to my lira account in Turkey  - this will be in my favour as I will transfer a few thousand pound and get more lira for my money . No matter how the rate goes I will still have 3.6 to spend later in the year? Thanks

[Scunner]

Yes but if it goes to 4.6 at the time of your visit you would have effectively lost out to the tune of 1 lira per pound, or 1000 TL per £1000.
 

[SuziQ]

Thanks  - Yes this is the risk . However I think I will be happy with 3.6 as I remember a couple of years back only getting 2.2 one visit. Suppose it's the chance one takes.

[Scunner]

Yep it's all a game - not usually much fun though, we always seem to get a low rate when we want a high one and then a high one when we need a low one   

[corbindallas]

Hopefully RTE days are numbered and we can have a new face running the show and a honeymoon period for the economy then I can transfer back to Sterling.