The Turkish Central Bank’s Monetary Policy Committee (MPC) made an expected decision to increase interest rates by 500 basis points in its November meeting. Following the interest rate hike, the policy rate reached its highest level in the past 20 years, standing at 40%.
TCMB Raises Policy Rate to 40%
Under the leadership of Hafize Gaye Erkan, the TCMB raised the policy rate for the 6th consecutive time. The MPC decision exceeded expectations by increasing the policy rate by 500 basis points, bringing it to 40%.
According to the survey conducted before the TCMB’s MPC meeting, the expectation was 37.5%. The change in the policy rate exceeded the expectation.
Contrary to the survey results, a decision was made that was higher than the anticipated increase, and the policy rate became 40%, contrary to economists’ expectations. The year-end policy rate expectation of economists has also reached 40%.
BTC/TRY Current Situation
The record highs experienced last month were due to expectations of the approval of a Bitcoin ETF in the United States. During this period, Bitcoin prices also rose against the dollar, supporting the situation.