USD/TL Rate Is Rising Rapidly After The Interest Decision
After the interest rate decision, USD/TL exchange rate is rising rapidly. The exchange rate increased to 11,3118 and reached record levels.
USD/TL broke a new record after the
Central Bank of the Republic of Turkey cut the policy rate by 100 basis points and set it to 15 percent.
Testing below the level of 10.50 before the decision, the USD/TL rate exceeded the level of 11 in the section following the announcement of the interest rate decision. The record level was recorded as 11,3118 in the exchange rate. The USD/TL has increased by 50 percent since the beginning of the year. Euro/TL rate also reached the highest level of 12.8269 during the day.
Turkey's credit default risk premium (CDS) rose to 448 basis points, while the 10-year bond yield stood at 20.32 percent.
In line with the expectations, the CBRT cut the policy rate by 100 basis points to 15 percent.
In the text of the decision, the
CBRT stated that it would evaluate the "completion of the use of the limited space" in the interest rate cut in December.
In the statement, CBRT said, "The Board expects the temporary effects of supply-side factors outside the influence of monetary policy on price increases to continue throughout the first half of 2022."