The Central Bank Monetary Policy Committee (PPK) announced the last interest rate decision of the year. In line with the expectations, MPC kept the one-week repo auction rate, which is the policy rate, at 9 percent.
Last month, MPC lowered the policy rate by 150 basis points to single digits after two years. In the August-November period, a total of 500 basis points of interest rate cuts came.
‘INCREASE RISKS TO GLOBAL DEMAND’
In the MPC resolution text, which stated that the Board evaluated the current policy rate to be at a sufficient level considering the increasing risks related to global demand, “A comprehensive policy framework review process that encourages permanent and strengthened liraization in all policy instruments of the CBRT continues in order to institutionalize price stability in a sustainable manner. “Credit, collateral and liquidity policy steps, whose evaluation processes have been completed, will continue to be used to strengthen the effectiveness of the monetary policy transmission mechanism.”
LAST MONTH, NET SIGNAL WAS GIVEN
While the MPC cut the interest rate by 150 basis points last month, the resolution text stated that “The Board evaluated that the current policy rate is at a sufficient level considering the increasing risks regarding global demand, and decided to end the interest rate cut cycle that started in August.”
NO SIGNIFICANT MOVEMENT HAS OCCURRED IN THE CURRENCY
Therefore, today’s decision came completely in line with expectations. For this reason, there was no significant movement in the dollar/TL after the decision.
The dollar, which was traded above 18.57 lira before the decision, continued its course in the range of 18.67-18.68 lira after the decision.