TCMB, the eagerly awaited interest rate decision was announced. Accordingly, the TCMB Monetary Policy Committee increased the policy interest rate by 250 basis points to 42.5% at its regular meeting in December, in line with expectations.
This Was the Seventh Interest Rate Hike Since June
This decision was taken after six separate interest rate hikes of 650 basis points in June, 250 in July, 750 in August, and 500 each in September, October, and November. In addition to a total interest rate increase of 3,150 basis points, the latest decision brings the total increase within six months to 3,400 basis points. In other words, the interest rate has increased by 34% during this period. After last month’s interest rate hike by the TCMB, it was the first time since November 2021 that real positive interest rates were achieved.
According to a survey of economists conducted by AA Finance, economists had predicted that the TCMB would raise the policy interest rate by 250 basis points to 42.5%. The TCMB Monetary Policy Committee made a decision in line with expectations, raising the policy interest rate by 250 basis points to 42.5%.
The Depreciation of the Turkish Lira Benefits Bitcoin
On the other hand, the cryptocurrency market continues to rise with the expectation of a spot Bitcoin ETF from the US. After Bitcoin rose above $44,000 and then retreated following a sharp drop in US stock markets, it is once again approaching the $44,000 threshold. At the time of writing, Bitcoin is seen trading at $43,911 against the US dollar.
The rise of Bitcoin against the US dollar and the fall of the Turkish lira against the US dollar have led to the largest cryptocurrency continuously setting new records against the Turkish lira. According to current data, Bitcoin has risen by 2.78% against the Turkish lira in the last 24 hours, reaching a level of 1.28 million lira.
Furthermore, data shows that Bitcoin’s price has increased by 2.38% against the Turkish lira in the last 7 days and by 17.78% in the last 30 days.
