First expert reactions following CBRT's interest rate decision: 'Liquidity regulations may be coming'

The Central Bank of the Republic of Turkey (CBRT) has announced its interest rate decision.

While the decision stated that the interest rate would remain unchanged at 50 percent, economists have interpreted the move.

Highlights are as follows:

Economist İris Cibre, following the decision, drew attention to the CBRT's statement that "the excess liquidity resulting from the demand of domestic and foreign residents for Turkish lira financial assets will be sterilized with additional measures," and stated the following:

"New measures for liquidity will be announced...

By emphasizing the stickiness in services inflation and choosing to hold, they show they are satisfied that the markets are not slowing down enough

Sentences that will create a false perception..."

"LIQUIDITY REGULATION MAY BE COMING"

Former CBRT chief economist Hakan Kara shared the following:

"The Central Bank is saying that it will tighten further if necessary by emphasizing the risks regarding inflation. It is accurate communication.

By saying this, it is also signaling that it will not allow the overnight market rate, which has been at 47% in recent days, to fall below its official rate of 50%.

Liquidity regulations may be coming."