Stock market gains approach 2 percent following Central Bank interest rate decision

The TCMB Monetary Policy Committee (PPK) kept the policy rate, the one-week repo auction rate, unchanged at 50 percent.

The PPK announcement stated, "While core goods inflation continues to remain low with a limited increase, the improvement in services inflation is expected to materialize in the final quarter. In the event of a significant and persistent deterioration in inflation, monetary policy tools will be used effectively."

STOCK MARKET GAINS APPROACH 2 PERCENT

Following the decision, gains in the BIST 100 index approached 2 percent, with the rise in the banking index drawing attention. The BIST 100 index at Borsa Istanbul, which rose to 9,980.81 points, is currently at 9,956 points with a 1.9 percent increase.

While all sector indices rose, the banking index, which gained 3 percent in value, is the top-performing index among sector indices. Following the banking index, real estate investment trusts gained 2.2 percent, transportation 1.9 percent, information technology approximately 2 percent, and holding companies 1.9 percent.

LATEST STATUS IN FOREIGN EXCHANGE

Following the decision, the dollar/TL is trading at 34.0130 with a 0.2 percent decrease, the euro/TL at 38.0590 with a 0.4 percent increase, and the sterling/TL at 45.1940 with a 0.2 percent increase.

Turkey's 5-year credit default swap (CDS) approached 256.5 basis points, the lowest level seen since February 2020.

Analysts noted that the signals taken from the TCMB's decision text are interpreted as a sign that the fight against inflation will continue seriously, stating that this situation could support demand for Turkish lira assets.

News Source: AA