Dollar awaits Central Bank's interest rate decision The dollar started the day from 7.72 lira and the euro from 9.15 lira. Today, the Central Bank's interest rate decision will determine the course of the markets.
The Central Bank Monetary Policy Committee (PPK) is meeting for the first time today under the chairmanship of Naci Ağbal. Contrary to what was expected, the MPC did not increase interest rates last month. This caused fluctuations in exchange rates. Today, an interest rate hike is expected from the Center.
Many analysts and institutions have announced that they expect an interest rate increase of 400 to 500 basis points in the last 10 days.
The interest rate decision to be announced at 14:00 can be effective on the course of the exchange rates.
This critical day started with $ 7.72 and Euro 9.15.
In the world, the second wave of coronavirus and developments in vaccination are followed. Although there are good news about the vaccine, the increase in the number of cases makes the markets uneasy.
Central Bank expected interest rate hike
The Central Bank Monetary Policy Committee (PPK) is meeting for the first time today under the chairmanship of Naci Ağbal. The PPK will announce the interest rate decision at 14:00.
There was a strong expectation in the markets that the interest rate would be hike in the last weeks. All 27 economists who participated in the market expectation survey of AA Finans's MPC meeting predicted an increase in the policy rate (one-week repo auction interest rate). Expectations of economists expecting an interest rate increase ranged from 200 basis points to 550 basis points. The median of economists' policy rate expectations for November was 475 bps.
Şekerbank Chief Economist Dr. Gülay Elif Yıldırım stated that recent statements and developments in the field of economy have been positively reflected on the market and that she has positive expectations for the next period.
In the survey conducted by Reuters with the participation of 13 economists, expectations were between the policy rate to increase to 14.25 percent with an increase of 400 basis points and to 16 percent with an increase of 575 basis points.
Reminding that the weighted average funding cost is 14.64 percent and the Late Liquidity Window (LAP) interest rate is 14.75 percent, Yıldırım said, "I expect an adjustment of 400-450 basis points in the policy rate from the CBRT. "This is actually an interest adjustment rather than an interest rate increase. Because the banking sector is positioning itself according to 14.75 percent."
EXPLANATIONS WERE EFFECTIVE
US finance giant Goldman Sachs also announced that it expects an interest rate hike of up to 475 basis points from the Central Bank
The statements made by Naci Ağbal after taking over from Murat Uysal were effective in the formation of this expectation. Ağbal said that the main purpose of the Central Bank is to ensure and maintain price stability and that all policy tools will be used decisively in line with this purpose.
The PPK was expected to raise interest rates from the meeting last month, but this expectation was not realized. PPK, late