The Central Bank of the Republic of Turkey (CBRT) has officially cut interest rates with the statement it has just made. The central bank cut interest rates by 100 basis points.
MPC Decision of 16 December 2021: The 1-week repo auction rate was reduced by 100 basis points. pic.twitter.com/Kfm2a5p2rW
— Central Bank (@Central_Bank) December 16, 2021
With this news, the US Dollar saw the level of 15.76 TRY, albeit for a short time, while the Euro came very close to the 18 level. Sterling, on the other hand, broke a record after this decision by seeing the level of 21 TRY for the first time in its history.
It is known that the CBRT sold a total of 4 billion dollars of reserves in the previous days and took steps to keep the US dollar at 15 TRY. Despite this and the Central Bank Governor Kavcıoğlu’s focused statement that no interest rate cuts will be made any more, the reduction in interest rates led to a sharp rise.
In the continuation of this decision, all eyes were turned to President Erdogan’s speech today. Erdogan will announce the minimum wage to be applied in 2022 at 15:00, and volatility in exchange rates can be observed during Erdogan’s speech.