USD/TL Strengthened Following The Decision

USD/TL strengthened following the interest rate decision of the CBRT. Turkish Lira gained nearly 1 percent value against the US dollar after the CBRT's messages that the tight stance would continue for a while.

USD/TL strengthened after the interest rate decision. The Central Bank of the Republic of Turkey (CBRT) did not change the interest rate, which caused Turkish Lira to appreciate against the US Dollar. After the Monetary Policy Committee's interest rate decision and the messages that the tight stance will be maintained for a long time, the dollar/TL rate declined by almost 1 percent. CBRT drew attention to the tightening, stating that while keeping the policy rate constant at 17 percent, the tight stance will be maintained for a while. According to the results of the interest survey shared by the Bloomberg HT Research Unit, economists predicted that the CBRT will keep the policy rate constant at 17 percent at the first meeting of 2021. Naci Ağbal, who was appointed in November 2020, raised the policy interest by 4.75 points in the first meeting he attended and 2 points in the second meeting. However, the policy rate had reached 17 percent. The yield of the two-year Treasury bonds decreased by 1 basis point to 14.8 percent in Turkey. The yield of 10-year dollar denominated Treasury bonds fell by 3 basis points to 5.82 percent. The 5-year loan default swap (CDS) premium rose by 2 basis points to 335 basis points. In Borsa Istanbul, BIST 100 Index continues its earnings after the bank's decision, after starting the day with 0.55 percent gain.