Following the interest rate decision of the Central Bank of the Republic of Turkey (CBRT), the increase in the BIST 100 index approached 2 percent, while Turkey’s banking index, which fell to its lowest levels in the last 4 years, is leading the increase.
The CBRT Monetary Policy Committee (PPK) kept the one-week repo auction interest rate, which is the policy rate, unchanged at 50 percent.
“While core goods inflation continues to trend low with a limited increase, improvement in services inflation is expected to occur in the last quarter. In the event of a significant and permanent deterioration in inflation, monetary policy tools will be used effectively,” the MPC statement said.
Following the decision, the increase in the BIST 100 index approached 2 percent, while the increase in the banking index drew attention. The BIST 100 index in Borsa Istanbul, which rose to 9,980.81 points, is currently at 9,956 points with a 1.9 percent increase.
While all sector indexes increased, the banking index gained 3 percent and is the index that gained the most among the sector indexes. Behind the banking index, real estate investment trust gained 2.2 percent, transportation gained 1.9 percent, informatics gained approximately 2 percent and holding gained 1.9 percent.
Following the decision, the dollar/TL is traded at 34.0130, down 0.2 percent, the euro/TL is traded at 38.0590, up 0.4 percent, and the pound/TL is traded at 45.1940, up 0.2 percent.
Turkey’s 5-year credit risk premium (CDS) approached the lowest level since February 2020, at 256.5 basis points.
Analysts noted that the signals received from the CBRT’s decision text were interpreted as the fight against inflation will continue seriously, and that this situation could support the demand for Turkish lira assets.
