Markets were locked at Thursday's Monetary Policy Committee meeting. Interest rate increases are the only way out of the economic crisis. The economic agenda is also brewing accordingly. The news is triggering a "strong interest rate increase" expectation. While the markets are condemned to 'interest' and 'exchange rate', other options and quests are ignored. Even the news agencies of the state are making a way to increase interest rates with their services and publications.
According to AAA's news, economists, the Central Bank of Turkey (CBT) Thursday's Monetary Policy Committee (MPC) predicts an increase in the policy rate meeting will do.
Boğaziçi University Department of Economics Professor Dr. Burak Saltoglu stated that the possible increase in interest could actually be considered as a reaction to the last level in the inflation, signaling a sense. After the high inflation figures on September 3, he pointed out that the direction from the CBRT would be a definite interest rate increase, he said. "Personally I do not expect a high increase of 500 points. But an increase of 300-350 base points seems more reasonable. Otherwise, it may not be a very special macroeconomic effect. Setup attacks maybe not a remedy, but the kurt wave can be useful to limit the size of a certain area" he said.
Turkish Investment Research Department Head Baki Atılal said that the CBRT's "interest rate increase" in the last interest rate decision called "protection" as the forward guidence and that the "monetary stance will be reshaped" in the last week's statement, he said.
Moreover, Atılal stated that while the 10-year bond interest rates in the US rose to 2.95 percent from 2.83 percent, the 10-year and benchmark bond interest differential was at 5.05 points.
Atılal stated that the Central Bank's worsening USD/TL short-term volatility volatility rates should be 17.75 percent for the annual interest rate, while the annual inflation expectations for TÜFE-UFE will be 17.90 percent, we expect to see an increase of 250 basis points in the policy rate of the CBRT by seeing that it does not offer real interest rates and taking into account the Medium Term Program (OVP)."
Atılal, who expressed that the interest rate increase and the hot money could be drawn in the short term, cautioned that the negative situation among the emerging markets would be alleviated.