the central bank200 basis points above market expectations. decision to raise interest rates Subsequently, although the rise accelerated under the leadership of bank stocks in Borsa Istanbul, exchange rates fell sharply.
Before the decision, it was at the level of 7.47-7.48 dollar / TLIt fell as low as 7.32. The rate is around 7.35 in these minutes.
Record a similar performance euro / TL it also decreased from 8.92 to 8.76.
The Central Bank increased the one-week buyback rate (policy rate) by 200 basis points from 17% to 19%. In the text of the decision, the expression “It has been decided to make an additional frontal and strong monetary tightening, considering the upside risks” due to the increase in interest rates above expectations.
Experts reported that the CBRT supported Turkish lira assets by taking an early tightening step against mounting inflationary pressures.
100 CBRT BASE POINTS EXPECTED
Market surveys beat the results that the Central Bank would raise interest rates by around 100 basis points at today’s MPC.
Related article: “The messages given by the CBRT are forceful”
UNCHANGED FED INTEREST
On the other hand, new peaks were seen in the US equity markets following the Fed’s decision on interest rates and President Powell’s remarks.
At the meeting where the United States Federal Reserve (Fed) left interest rates unchanged, the dollar index, which was pushed back with macroeconomic projections and inflation, rose again today, and the yields of US 10-year bonds were 1.74 percent, the highest level since January 2020. He said he saw
The Fed confirmed its plans to maintain loose monetary policies until the US economy has further recovered from the effects of the corona virus outbreak. The Fed also kept the interest rate at 0.00-0.25 percent.
Fed officials raised their 2021 growth expectation from 4.2 percent to 6.5 percent. Fed Chairman Jerome Powell, who held a press conference after the decision, said that it is not yet the time to talk about slowing down the pace of bond buying and reducing bond buying.
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