Expectations of a decline in the price of the Turkish lira until the end of the year (Getty)
to announce Central Bank of Turkey Today’s interest rate fell by 150 basis points after the Monetary Policy Committee met with Governor Shihab Kavcioglu. Interest fell from 12 to 10.5 percent after three consecutive cuts, which occurred after the interest rate was set at 14 percent during the bank’s last seven meetings.
The Turkish Central Bank has maintained a stabilization policy interest rates However, during the past seven meetings since the beginning of this year, it has cut the interest rate twice in the past two months, in line, according to observers, with the promises of Turkish President Recep Tayyip Erdogan, which he recently made since state of “Balikesir” saying, “As long as your brother is in this position, he will continue.” Interest decreases with every passing day, every week and every month. “
The central bank said today after the rate cut decision: The weak impact of geopolitical risks continues Economic activity worldwide on the rise, ”adding in a statement that assessments that recession is an inevitable risk factor are spreading.
He continued: “Although the negative effects of supply restrictions in some sectors, particularly in staple food, have been reduced thanks to the strategic solution tools developed by Turkey, the upward trend in producer and consumer prices continues. on an international scale “.
The Turkish Central Bank added that the effects of high global inflation and international financial markets are closely monitored. However, central banks in developed countries say that inflation may take longer than expected due to rising energy prices, mismatches between supply and demand and stagnating labor markets.
Finance professor at Basaksehir University in Istanbul, Firas Shabo, believes the foreign exchange market will not suffer much, “because it is psychologically prepared through the president’s speech”, suggesting a drop in the lira exchange rate, recorded before the news. of the interest rate cut this morning, 19.56 against the dollar and dropped after the central decision to around 18.6 pounds per dollar.
Shabo adds to Al-Araby Al-Jadeed that it is illogical to compare the Turkish Central Bank’s measures with the rest of the international banks raising the interest rate, because the interest rate in Turkey, despite recent cuts, is still high and inconsistent. with the Turkish economic policy that aims to direct savings towards productive sectors and investment channels, increasing production and helping to increase the growth rate.
The finance professor predicts that the interest rate in Turkey will drop below 10% at the end of this year and that the dollar rate will reach 20 pounds, which will increase the inflation rate and high prices for producers and consumers. , believing that the Government of Justice and Development in Turkey will provide methods of direct and indirect support, for consumers and producers, because the goal in Ankara is to increase exports to 300 billion dollars this year and to maintain a rate of high growth.
The prices of goods and products in Turkey are seeing successive rises, which have pushed inflation to a maximum in a quarter of a century, after a jump last month to 83.5% year-on-year, prompting the Minister of the Treasury and of Finance, Noureddine Nabati, to announce the continuation of the strong support of the Turkish government on the Natural gas bill, after having subsidized 82% of the national gas bill in the first five months of this year.
