The Central Bank of the Republic of Turkey (CBRT) announced that the policy rate was cut by 100 basis points to 12%. explained.
The CBRT announced that the policy rate was lowered last month. He said that after the 100 basis point decrease, it was also reduced by 100 basis points this month.
The last rate hike was in 2020. in the 8th month The CBRT made the last interest rate cut decision before last month in 2021. in the 11th month had given.
Since then approximately 9 months policy rate 14% was in the ratio. With the interest rate cut last month and this month, this rate was reduced to 12%.
In its press release on interest rates, TCBM made the following statements regarding the issue:
The Monetary Policy Committee (Committee) determined that the one-week repo rate, which is the policy rate, is a percentage of the interest rate. from 13 to 12 percent decided to download it. 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 continues in the monetary policy steps and communications of the central banks of developed countries. 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 18.38 is being traded.