After the end of the elections, the Central Bank of the Republic of Türkiye CBT held its first monetary policy board meeting. Announcing its decision at 14:00 Turkish time, the CBRT increased the policy rate by 650 basis points to 15.00%.
Market participants were expecting the new management led by Hafize Gaye Erkan to increase the funding rate by 1150 bps from 8.50% to at least 20%. The decision, announced minutes ago, means that the increase was realized under expectations.
Dollar/TL Started Calmly, However…
which witnessed a rapid rise after the elections. USD/TL The parity reached the level of 23.60 until the week of June 12. Allegedly, the CBRT administration, which allowed the currency to appreciate in this process, pressed the button again.
Although there has been no significant change in the exchange rate, which has been fluctuating in the range of 23.50-23.60 for about 10 days after the CBRT’s interest rate decision, the upward movement has just begun. As of 14.37, the Dollar/TL parity is at the level of 24.12 TL.
Latest Situation in Borsa Istanbul
Due to high inflation and low interest rates, a significant portion of domestic investors preferred the stock market to protect their assets. The direction of the monetary policy with the new government is of interest to the BIST investor. The BIST 100 index, which broke a record after the election, has lost 10% of its value in the last 10 days.
As a result of the interest rate decision announced by the Central Bank, there was no significant movement in the stock market. Although the BIST 100 index fell below 5190 points at the time of the decision, it rose again to 5270 points within minutes.
In contrast to the general index, banks that have a close relationship with interest rates are on the negative side. Although the banking index XBANK fluctuated at the time of the decision and jumped above the 5 thousand level again, it could not hold there and regressed again. The shares that lost the most value in the banking index, which was at the level of 4,930 as of 14:30, were AKBNK and YKBNK with 1.24 percent.
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