How was this week in the economy?
Following the last interest rate increase that exceeded market expectations, the Central Bank of the Republic of Turkey made an interest rate increase in line with the forecasts this time. The CBRT Monetary Policy Committee, convened under the chairmanship of Hafize Gaye Erkan, increased the one-week repo rate from 25 percent to 30 percent with an increase of 500 basis points. With the latest increase, the CBRT has made its 4th interest rate increase under its new management.
FED KEEPS INTEREST RATE FIXED
The US Federal Reserve (Fed) announced the interest rate decision that global markets were waiting for. While the Fed kept the policy rate constant as expected, most Fed officials signaled another interest rate increase this year. The downward revision on the core PCE side, together with the upward revision to the 2023 growth expectation in the Fed’s economic projections, attracted attention.
‘POSITIVE DEVELOPMENTS IN INFLATION WILL BE SEEN IN THE FIRST QUARTER OF 2024’
Stating that the fight against high inflation, which is a problem all over the world, is one of the main goals of the OVP, AKP President Recep Tayyip Erdoğan stated that the economy will be made resistant to all kinds of storms with financial discipline and structural reforms. Stating that positive developments regarding inflation will be seen in the first quarter of next year, Erdoğan stated that they want to make one of the towers in Ataşehir the energy market center and that the work regarding retirees will be completed soon.
A FIRST IN KKM
The series of declines in exchange rate protected deposits continued last week. Thus, for the first time, the decreasing streak in KKM extended to four weeks.
