Surprising ‘Interest Cut’ Statement by CBRT President

Contrary to the expectations of the whole world, the Central Bank of the Republic of Turkey (CBRT) lowered the policy rate in September and October. 300 basis points had downloaded. After these decisions, a rapid increase was observed in the foreign exchange rate, and a 100 basis point reduction was made in the interest rate in November. With the interest rate cut while the dollar stands at 14Purchasing power decreased significantly in a short time with the increase in exchange rate and inflation.

After the decisions affecting the foreign exchange and inflation, the interest rate decision of the CBRT in December is expected with interest. While President Erdogan continues to state that they will not return from the interest rate cut, he has recently CBRT Chairman Şahap KavcıoğluHe stated that there is limited space for interest rate cuts. Finally, Kavcıoğlu made another remarkable statement.

“There may not be an interest rate cut decision in December”

According to the information conveyed by Credit Suisse analysts, CBRT Chairman Şahap Kavcıoğlu, at the investor meeting held last week, at the policy rate meeting on 16 December. increase the probability of no interest rate cuts. expressed. CBRT Chairman, in the same meeting, as stated above,We have limited space left for the rate cut‘ he used the phrases:

About two weeks ago, Goldman Sachs announced that TL has been under serious pressure recently. Goldman Sachs, one of the world’s largest banks, It predicted that it would raise interest rates by 600 basis points in the second quarter of 2022.. Deutsche Bank also if the policy does not change TL will continue to depreciate explained.