While the announcement of the Central Bank’s interest rate decision is eagerly awaited, possible scenarios in case of an interest rate hike have been discussed for days. The cabinet that changed after the election and the new economic policies expected to be implemented will begin to take shape after the CBRT’s announcement.
Central Bank Statement What Time Is It?
The CBRT interest rate announcement will be announced on Thursday, June 22 at 14.00. On the other hand, the BIST 100 Index, which broke a record by testing the level of 5.730 last week, has been subject to some selling pressure before the monetary policy meeting.
What Will Be the CBRT Interest Rate Decision?
Many predictions and theories have been put forward regarding the Central Bank’s interest rate decision. Experts from both foreign and domestic sources made statements on the subject. Monetary Policy Committee (PPK) expectations surveys have been concluded. Foreign institutions, on the other hand, updated their interest rate forecasts before the CBRT meeting. According to this;
US bank JPMorganstated that the CBRT may increase the policy rate to 25 percent at its monetary policy meeting on June 22.
Goldman Sachs , in his assessment of Turkey’s interest policy after the last appointments, “Completely orthodox decision makers can raise interest rates to 40 percent in Turkey.” used the phrases.
Bank of America Securitiesannounced that they expect the Central Bank of the Republic of Turkey to raise the policy rate to 25 percent, but they also see room for a downside surprise.
Also, the credit rating agency moody’sIn the report published by the Central Bank, it was noted that the Central Bank is expected to reduce the policy rate to 25-30 percent by bringing it closer to deposit rates.
What Happens to the Stock Market If Interest Rates Increase?
In the event of a possible interest rate hike by the Central Bank, the question of where the stock market will go has confused the minds. In general, when there is an increase in interest rates, the stock market tends to turn negative. Therefore, the opinion that “If the interest rate increases, the stock market will fall” is one of the points where experts agree.
On the other hand, the fact that the stock market has been exposed to negative effects and interest rate hikes for a while is considered positive. Because the continuation of the rally in the stock market despite the possibility of an interest rate hike is confusing. In other words, if the right moves are made and a strategic policy can be carried out successfully, it is also among the predictions that the stock market will not be negatively affected by a possible interest rate hike.
