Turkish Central Bank’s Year-End Interest Rate Decision in Uncertainty

The uncertainty continues about the Turkey’s Central Bank’s (TCMB) year-end interest rate decision to be announced on December 26.

Prior to the interest rate decision, the high inflation rate remains the dominant view in the markets, while the USD/TRY closed at 35.0940 yesterday and reached a record high by trading at 35.1580 at the opening of the interbank market today.

EYES ON THE FED

On the other hand, the indications that the Federal Reserve (Fed) will be more cautious in interest rate cuts next year are complicating the pricing.

With these developments, the strengthening of expectations that the Fed may cut its policy rate slower than anticipated increases the demand for the dollar, pushing the dollar index to its 4th consecutive rise, reaching 108.5.

(ECONOMY SERVICE)