No significant movement was observed in the dollar after the Central Bank of the Republic of Turkey (CBRT) announced the policy rate as 50% as expected.
The CBRT announced today that it kept the interest rate unchanged at 50% as expected. The CBRT had kept the policy rate, which it had been increasing for months after the change of the previous administration, unchanged in February. The current administration kept the interest rate unchanged at 50% as its 8th decision.
In the past period, interest rates were quickly reduced to 8.5%, but in line with the decisions taken in the last year and a half, interest rates have reached 50%.
It was said that the policy rate will be determined in a way that will reduce the underlying trend of inflation and provide monetary and financial conditions that will bring inflation to the 5 percent target in the medium term, taking into account the lagged effects of monetary tightening in policy decisions.
In its press release regarding interest rates, the Central Bank of Turkey (TCBM) made the following statement regarding the issue:
The Monetary Policy Committee (the Committee) decided to keep the one-week repo auction interest rate, which is the policy rate, constant at 50 percent.
When the monthly inflation indicators in August are examined as a whole, it is assessed that the main trend has not exhibited a significant change. The indicators for the third quarter confirm that domestic demand continues to slow down and its inflationary effect has diminished. While core goods inflation continues to be low with a limited increase, improvement in services inflation is expected in the last quarter. The Committee noted that inflation expectations and pricing behaviors continue to be risk factors for the disinflation process.
There was no change in the price due to the data coming to the expected level. According to Binance data, the USDT/TRY parity is being traded at 34.05 after the announcement.
Stay tuned for new information.
