The eagerly awaited decision was announced just moments ago. Accordingly, the Central Bank of the Republic of Turkey’s Monetary Policy Committee announced its interest rate decision. Many analysts and experts expected the policy rate to remain unchanged this month. The announced decision kept the rates steady at 50%, in line with market expectations.
CBRT Announced Its Decision
According to expert economists participating in AA Finance’s expectation survey, the CBRT’s policy rate was expected to remain at 50%. Experts participating in the survey calculated the year-end policy rate to be 45%. The most notable development is Turkey’s 5-year credit risk premium (CDS), which continues its downward trend, falling to 263.1 basis points, the lowest level since February 2020.
Along with all these developments, the Dollar/TL exchange rate remained flat yesterday, closing slightly above the previous close at 32.18. Today, the exchange rate is trading slightly higher at 32.21. Recent policy changes will continue to be closely monitored. Especially with the decline in CDS, economic stability may come back into focus.
