As expected, the central bank kept the policy interest rate unchanged at 50%. After the interest rate decision, USD/TL fell.
The dollar/TL fell below $33 this week and was trading around $32.83 after the interest rate decision, down 0.24%. The euro/TL also found buyers at 35.66, down 0.61%.
The central bank has introduced new measures to prevent excess liquidity in the market, allowing the CBRT to launch swap auctions where gold and foreign currencies can be sold in exchange for the Turkish lira.
The Economic Coordination Committee was convened under the chairmanship of Vice President Yilmaz. In a statement after the meeting, the committee said it had implemented the actions set out in the Medium-Term Plan (MTP) with determination. It said that financial stability had been strengthened due to increased interest in the Turkish lira.
The consumer confidence index fell 3.1% to 75.9 in July, thus dropping to its lowest level in 2024.
Hakan Alan, general manager of the bank, said people are starting to tighten their belts. Alan said the economy is starting to slow down and that it will not recover until 2027.
Domestic tourists spent 45.3 billion lira on travel in the first quarter of this year. During this period, 8.262 million people living in the country went on trips, primarily to visit relatives.
Global markets are focused on US President Joe Biden’s presidential campaign and balance sheet red tape, as investors await the balance sheets of Tesla and Alphabet, which are due to be released after the New York Stock Exchange closes today.
