Central Bank's rate hike lowers the dollar
The fact that the Central Bank increased the policy rate by 7,5 points to 25 percent at its meeting yesterday caused the dollar to decline sharply. The dollar/TL, which was at the level of 27,23 before the decision, decreased to 25,30 after the announcement of the interest rate decision. Today, the exchange rate moves around 26,50 liras.
The fact that the Central Bank's interest rate hike was an unexpected move was welcomed in the markets. Market participants evaluated that the interest rate hike would be effective in the fight against inflation and would curb the upward trend in the dollar.
After falling below 28, Euro/TL is trading at 28,61 today.
It is unclear how long the impact of the rate hike will last.
However, it is unclear how long the effect of the Central Bank's rate hike will last. There are also expectations in the market that the dollar may rise again.
If the Central Bank maintains its determination in the fight against inflation and takes the necessary steps, the rate hike is expected to curb the upward trend in the dollar in the long run.
