Following President Erdoğan’s words, “This government will not increase the interest rate. We will continue to lower the interest rate,” the Central Bank has reduced the policy rate by 500 points in 4 months, starting from September 2021, and reduced the policy rate from 19 percent to 14 percent, as of January 2022. has not changed since. The move of the CBRT Chairman Şahap Kavcıoğlu, who has not made any changes in the policy rate for 7 months, at the Monetary Policy Committee (MPC) meeting to be held on Thursday started to be curious.
Before the MPC decision, which closely concerns gold and silver prices, especially the dollar and euro rate, President Erdoğan received another signal.
Before the MPC decision, which will hold the eighth monetary policy meeting of the year on Thursday, President Erdoğan’s remarks drew attention.
Stating that both the current monetary policy and the New Economy Model will continue at the party meeting held yesterday, Erdoğan said, “The economic program we implement is built on the future, not the past. In fact, there is no one-size-fits-all economy model in the world. Each country develops and implements its own economic program according to its own conditions, opportunities, needs and targets, benefiting from the general approaches that we follow closely. .
We are talking about a currency guaranteed national currency, but they cannot digest it. While some of the economists vilify our program to benefit their owners despite knowing these facts, some of them are blindly hostile to us because of their ignorance.” said.
These words of Erdogan were interpreted as a signal that the CBRT’s low interest policy would continue.
On the other hand, while a surprise decision is not expected from the Central Bank meeting, the minutes that are closely related to the markets will be announced by the US Federal Open Market Committee one day before the meeting. It is emphasized that hawkish explanations for the dollar rate, which started with the rise due to the slowdown concerns in China and the decreasing risk appetite, may increase the activity.
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