After the Central Bank of the Republic of Turkiye (CBRT) increased the policy rate above expectations, the dollar/TL lost more than 7% in value.
The CBRT Monetary Policy Committee (MPC) increased the interest rate above the market expectations and increased the policy rate to 25% with an increase of 750 basis points. Market expectations were for an increase of 250 basis points.
After the decision, the dollar/TL dropped more than 7% and tested the level of 25.2784. Thus, the pair has seen the lowest level since June 26. Currently, the dollar/TL is trading at 25,7180, 5.4% below its previous close.
Euro/TL also dropped to 27.3705 with a decrease of more than 7% and tested its lowest level since 3 July. Currently, the pair is trading at 27.8910, down 5.5% from its previous close.
Turkiye’s 5-year credit risk premium (CDS) decreased by 30 basis points to 383.4 basis points after the interest rate decision.
Treasury and Finance Minister Mehmet Simsek, in his post on his social media account after the CBRT interest rate decision, said, “We are determined. Price stability is our top priority.”
Source: AA / Prepared by Irem Yildiz