The Central Bank of the Republic of Turkey (CBRT) cut the policy rate by 100 basis points to 14 percent, in line with the market expectations, at the last Monetary Policy Committee meeting of the year. Thus, the Center pulled back the policy rate by 500 basis points in total in the interest rate cuts it started in September.
Before the Center’s decision, the Dollar/TL was over 15 TL and the euro was over 17 TL. After the CBRT’s decision, the exchange rate rose above 15.73, renewing its record. On the last trading day of the week, the dollar exceeded 16 TL and took its historical peak up again. Euro/TL, on the other hand, turned towards 20 TL and saw a record of 19.12.
The economic situation in Turkey continues to deteriorate.