The Central Bank of the Republic of Turkey (CBRT) lowered the policy rate by 150 basis points to 10.5%. explained.
The CBRT announced that the policy rate was lowered last month. He said that after the 100 basis point cut, it was also reduced by 150 basis points this month.
The last rate hike was in 2020. in the 8th month The CBRT has been reducing policy rates for 3 months.
Since then approximately 9 months policy rate 14% was in the ratio. With the interest rate cut in the last 3 months, this rate was reduced to 10.5%.
In its press release on interest rates, TCBM made the following statements regarding the issue:
The Monetary Policy Committee (Committee) decided to reduce the one-week repo auction rate, which is the policy rate, from 12 percent to 10.5 percent.
The weakening effect of geopolitical risks on economic activity around the world continues to increase. Global growth forecasts for the upcoming period continue to be updated downwards, and the assessments that recession is an inevitable risk factor are becoming widespread. Although the negative effects of supply constraints in some sectors, especially in basic food, have been reduced thanks to the strategic solution tools developed by Turkey, the upward trend in producer and consumer prices continues on an international scale. The effects of high global inflation on inflation expectations and international financial markets are closely monitored. However, central banks of developed countries emphasize that the rise in inflation may take longer than expected due to rising energy prices, supply-demand mismatch and rigidity in labor markets. Depending on the economic outlook that differs between countries, the divergence in the monetary policy steps and communications of the central banks of developed countries continues to increase. It is observed that efforts to find solutions with new supportive practices and tools developed by central banks for increasing uncertainties in financial markets continue.
With this news, the dollar started to rise against the Turkish lira. According to the data received, at the time of writing, the dollar/TL parity from 18.58 is being traded.