Earlier than Reuters, Remzi Özdemir introduced the Central Financial institution’s rate of interest resolution. Who will profit most from this resolution?

The eyes of the markets had been turned to the rate of interest resolution of the Central Financial institution. Yeniçağ Newspaper author and economist Remzi Özdemir made necessary statements earlier than the Central Financial institution’s rate of interest resolution.

Özdemir’s associated article is as follows:

How will the choice of the Central Financial institution have an effect on the markets… Greenback, inventory market and deposits…

The Central Financial institution is saying its extraordinary rate of interest resolution at this time.
So how does this resolution, which isn’t so necessary, come about?
After all, it comes out with a 1 level rate of interest reduce.
This low cost is not going to profit anybody besides 4-5 banks and corporations that handle to get loans from these banks.
So what impact will it have on the markets?
BORSA: The inventory market has already blown up with the banking sector shares. Expectations are purchased within the inventory market. The expectation of the Central Financial institution to chop rates of interest was purchased by stockbrokers. As a result of the curiosity that the Central Financial institution will cut back to 11 is for the advantage of the banks, not this nation. In different phrases, the Central Financial institution will fund the banks with 11 %. Banks will take this cash and promote it to the residents with 30 %.
Because the Central Financial institution’s attainable rate of interest reduce resolution will enhance the 420 % revenue of the banks, which has elevated within the final 8 months, the inventory market, particularly banking shares, continues on its method.
MEVDAT INTEREST: When the poor particular person doesn’t eat or drink a number of cents and deposits his financial savings, which he has saved for dangerous days, as financial institution deposits, he’ll naturally obtain much less curiosity. Presently, the deposit price is at 16%. In Turkey, the place inflation is 85 %, those that deposit their cash with 16 % will lose 69 factors in actual phrases. In different phrases, 100 liras can be 116 liras in 1 yr with deposit curiosity. Inflation will obtain 69 liras of this quantity, and the buying energy of its cash will lower to 47 liras on the finish of the maturity interval. By the best way, it will likely be extra worthwhile to purchase sunflower oil, rest room paper and even chewing gum from the market.
DOLLAR: Central Financial institution’s again door operation will proceed. Specifically, as of 14.01 instantly after the rate of interest resolution, public banks will promote extra {dollars}. As a result of to say “Look, the Central Financial institution has lowered rates of interest, however the greenback has not risen”. After all, each greenback burned will enhance the severity of the attainable foreign money disaster in Turkey.