Please, could you comment Turkish central bank' interest rate decision?
Keeping interest rates unchanged at 8.5% was in-line with consensus expectations shared by investors and analysts alike. It showcases the central bank’s iteration that Turkey’s current monetary policy is adequate to aid the necessary economic recovery following the latest devastating earthquake.
Natural disasters have left Turkish residents dismantled yet again, fueling further depreciation to its eroded currency. We’ve witnessed the USD/TRY printing modest gains following the decision, weakening the battered lira ahead of the upcoming presidential election. Currently run by Erdogan, which received quite the criticism for the central bank’s increasingly-hawkish monetary policy, Turkey’s crisis may deepen further should he be re-elected.
Future supply-demand imbalances driven by earthquakes are being eyed by the CBRT; it is key for the nation’s central bank to keep an eye out on Turkey’s financial situation to avoid any further deterioration.
Some light in the dark, industrial production is on the rise and employment is growing, so it’s important to hone this momentum to secure some recovery in the foreseeable future. This will be pivotal not only on a national perspective but also on the macro scale. Turkey is the physical bridge between Asia and Europe, and the robustness of its bilateral relations with the European Union and NATO are significant for the country’s economic welfare and that of its allies.
BITmarkets sends its extended support to its Turkish traders and investors in such troubling times, and we hope that the coming years will be more economically-prosperous.
