Central Bank of the Republic of Turkey, CBRT, announced the interest rate decision at 14.00 after the Monetary Policy Committee (PPK). CBRT increased the policy rate from 25% to 30% with an increase of 500 basis points. Markets expected the Central Bank to raise interest rates by 500 bp to 30%. CBRT made a decision in line with the expectations of experts and market participants.
After the Central Bank’s interest rate decision, all eyes turned to the dollar, gold and the stock market. In recent days, the amount of criticism regarding the control of the dollar exchange rate has begun to increase. Despite the high inflation in July and August, the stagnation of the foreign currency led investors to doubt.
Dollar Rate and Gram Gold How Many TL?
Following the CBRT interest rate decision, the dollar exchange rate is at 27.07 TL as of 14.04.
Financial institutions began to differ with the new administration regarding the value of the Turkish Lira.
UK-based Barclays expects the dollar exchange rate to be 29 TL by the end of 2023. US-based JPMorgan, on the other hand, recommended a “limited long” position for the Turkish lira.
The price of gram gold, an investment tool loved by local investors, remained similarly calm. Gram gold is currently traded at 1,675 TL.
Stock Market is Recovering!
Borsa Istanbul index BIST 100, which started the day at 7,700 points with a decrease of approximately 0.60%, showed a slight recovery trend after the interest rate decision. BIST 100 index is at 7,750 points as of 14.08.
A new rally does not seem possible unless the stock market index is permanently above 7,850 points.