The CBRT, which increased the interest rate above the market expectations, increased the policy rate to 25 percent with an increase of 750 basis points.

Economists participating in the expectations survey had predicted that the CBRT policy rate would be increased by 250 basis points to 20 percent.

“With this decision, the CBRT has shown that it will take the necessary steps with determination when necessary”

Expressing that the interest rate decision was a “surprise”, Alnus Investment Research Director Volkan Zengin said that it is difficult to predict the first effect in terms of the stock market, but that they foresee this as a move that will strengthen the index trend in the medium term.

“After the surprise decision, the cards will be redistributed. Sectoral assessments will be made again. After the first impact, there will be a healthier pricing and balancing. For now, we continue to remain ‘cautious optimists’,” said Shopcik.

Stating that this interest rate decision of the CBRT can be described as a very “hawkish” step, Shopcik said, “This decision does not mean that the Bank will continue to increase interest rates or that steps of this magnitude will continue. However, the CBRT took the necessary steps with this decision, when necessary, with determination. He showed that he will shoot.”

“The Central Bank has returned to the field in the fight against inflation”

NCM Menkul Değerler AŞ Corporate Relations Director Ahmet Uluhan stated that the first effective interest rate increase took place after a long time and the decision was quite “hawkish” and said, “The Central Bank has returned to the field in the fight against inflation”.

Noting that the Board stated in the text it shared that it would “continue to implement more effective policies for price stability”, with very clear and striking messages, Uluhan said that the surprise interest rate decision had a positive effect on the exchange rate movements in the short term and on the deteriorating inflation expectations in the long term. He said he thought it would.

“The decision is extremely correct and on point”

Marmara University Faculty Member Prof. Dr. Burak Arzova, on the other hand, said that the decision was extremely “correct” and “right”.

Stating that the determinations in the policy text are strong and in line with the facts, Arzova said, “The most striking thing for me is that the policy rate will be determined in a way that will reduce the underlying trend of inflation and provide the monetary and financial conditions that will bring inflation to the 5 percent target in the medium term. Monetary tightening until a significant improvement is achieved in the inflation outlook. It will be gradually strengthened when necessary and to the extent necessary,” he said.

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