The direction of the dollar and gold will be determined by this decision: To be announced on December 26
With only a few days left until the end of 2024, investors are focused on the Central Bank of the Republic of Turkey's (CBRT) final interest rate decision of the year, which will take place on December 26. Markets are eagerly awaiting the step the Central Bank will take. What kind of impact will the Central Bank's decision have on the dollar/TL and gold? Here is the market expectation...
The impact of the policies Trump may implement following his victory on Turkey-US relations and developments in Syria are among the factors that will directly affect foreign investors' outlook on Turkey.
On the domestic front, the day that markets and investors have been eagerly awaiting has arrived. The Central Bank interest rate decision meeting, which will determine the fate of the dollar/TL and gold, will take place on Thursday, December 26, at 14:00. The impact the CBRT's decision will have on the markets is on the radar of market participants.
MIXED DIRECTION IN MARKETS
The stock market experienced a sharp rise due to the impact of geopolitical tensions and interest rate cut expectations. However, incoming sales pulled the index below the 10,000 level.
The CBRT is expected to cut the interest rate by 150 basis points to 48.50 percent at the meeting on December 26.
Markets have shifted to a “wait-and-see” mode, and it is observed that interest has waned as trading volume has fallen below 100 billion liras.
The December 26 CBRT meeting is cited by markets as a critical turning point.
The fact that November inflation came in above 2 percent has led the CBRT to act more cautiously regarding interest rate cuts.
The decision the Central Bank will make brings the issue of whether the interest rate policy will continue into 2025 to the agenda.
Whether exchange rates will remain stable after an interest rate cut and whether the fight against inflation will be disrupted are raising tensions in the markets.
A possible rise in exchange rates could create pressure on inflation.
The dollar/TL exchange rate rose to the 35.20 level during the week, seeing its historical peak. The dollar/TL showed some easing from this level and completed the week at the 35.10 level.
STABLE SINCE MARCH
The Central Bank had raised the interest rate to the 50 percent level at the meeting it held in March. The CBRT has kept interest rates constant for 9 consecutive times since April.
News Source: 12punto
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