What Happened on the Agenda This Week?
What happened on the agenda this week? We have compiled important developments in domestic and foreign markets for you. Here are the details ..
What happened on the agenda this week? This week there have been a lot of developments such as the CBRT and the ECB’s interest rate decision, S&P’s evaluation of Turkey’s credit rating, President Erdogan’s description of the coronavirus, Joe Biden oath ceremony. Here are the details ..
1- CBRT Announced Its Interest Rate Policy
Central Bank of the Republic of Turkey (CBRT) policy rate was kept constant at 17 percent. With this decision, the message was given that the tight stance will continue for a while.
The text of the decision included the following statements: “Taking into account the 2021 year-end forecast target, the Committee has decided to continue the tight monetary policy stance resolutely for a long time until strong indicators are formed that point to a permanent decline in inflation and price stability.”
Economists’ expectation was to keep the interest rate constant at 17 percent.
2- European Central Bank Kept Policy Rate Unchanged
The European Central Bank (ECB) kept the overnight deposit rate unchanged at -0.50%. The bank decided not to change, keeping the policy rate at 0.00% and the overnight lending rate at 0.25%.
While the ECB stated that the asset purchase program will continue at 20 billion Euros per month, the coronavirus epidemic kept the asset purchase program stable at 1.85 trillion Euros.
3- Turkey’s Credit Rating Evaluated by S&P
Standard & Poor’s (S&P), known as the international credit rating agency, reaffirmed the Turkey’s credit rating and rating outlook.
In the statement made by S&P, it was stated that the credit rating of Turkey in foreign currency was updated to “B +” and the credit rating in local currency to “BB-“.
In the statement that the country’s credit rating outlook is “stable”, it was stated that despite the coronavirus epidemic, the Turkey’s economy was estimated to grow 0.9 percent in 2020 with the effect of the credit incentive.
4- Vaccination Statement in Erdogan
President Recep Tayyip Erdogan announced that the second batch of vaccine could come from China by the end of this week. Erdogan’s expectation is that 10 million doses of vaccine will arrive.
The President also noted that restaurant restrictions applied within the scope of combating the coronavirus epidemic will also be discussed at the meeting, and that he still has concerns about it.
5- Biden Removes Traces of Trump
New President Joe Biden, who took office on January 20, signed 17 decrees on the first day of his tenure to reverse Donald Trump’s policies.
Biden first signed a decision mandating the wearing of masks in federal buildings and campuses due to the coronavirus outbreak.
Among the 17 decrees signed by Biden were the lifting of the travel ban for Muslim countries, a return to the Paris Climate Agreement and the World Health Organization.
6- Yellen: The Value of the Dollar Should Be Determined in the Market
Janet Yellen, who is expected to be the new Treasury Minister of the USA, made a speech in the Senate and said, “The USA should not target the weak dollar, we should prevent others from doing it. The value of the dollar should be determined by the market.”
Saying that they are aware that the US has a huge debt burden while preparing the stimulus package, Yellen said, “The wisest behavior is to play big when the interest rates are so low. Economists do not always agree, but there is a consensus now and if no more steps are taken, the economy will experience long-term damage. President Biden does not want to increase taxes during the epidemic. Providing incentives quickly is extremely critical for stability.”
7- 3-Day Loss of Bitcoin Exceeds 10 Percent
Bitcoin, which has been rallying since the last weeks of 2020, has lost momentum this week. The 3-day loss of the most valuable cryptocurrency has passed the 10 percent level.
While the depreciation accelerated in transactions on Thursday, Bitcoin fell to the level of $ 32,000.