>> TOOK THE NECESSARY DECISION
PROF. DR. HAKAN KARA
The Central Bank (CB) made a correct decision. It was necessary to control inflation expectations and KKM outflow. We understand that the rate hike has come to an end. In line with the PPK statement, there are two options: the end of a rate hike at 45% with two steps of 250 basis point increase in December-January, or the end of a rate hike at around 42.5% with the last step in December. The CB seems to decide in line with the data to be released. The first option can be chosen if the wage hikes are sharp in January.
>> TO PROCEED IN LINE WITH DEVELOPMENTS
PROF. DR. FATIH OZATAY
As the CB said it would slow rate hikes, it will raise the policy rate by 250 basis points to 42.5% and stop. The policy rate of 42.5% seems suitable in line with the course and expectations of inflation. It said the current level of loan interest rates is ideal for monetary tightening. It didn’t say anything about the lira deposit interest rates. But if the policy rate increases a little bit more, all that needs to be done for the monetary policy under current conditions will have been done. The CB will evaluate monthly inflations and proceed in line with developments.
>> CREDIT CARD AND REDISCOUNT LOAN DECISIONS ARE CRITICAL
DR. ATILIM MURAT
The CB took the plunge and surpassed the market expectations, and the PPK statement is consistent. The CB’s duty is to guide and direct the market. The decision and content of the statement are consistent and fulfill the direction duty. The CB also announced two critical decisions. The rediscount credit interest rate was fixed, a positive development for exporters. The hike in policy rate won’t be reflected in credit card interest rates, which is critical. Credit cards and cash advances are a significant source of living. Needers continue withdrawing with an annual interest rate of up to 60% and postponing the outstanding balance. At some point, it can reach a situation where people won’t be able to pay their debt, creating social and banking problems.
>> CONTRIBUTE TO DECREASE IN RISK PREMIUM
ORKUN GODEK
The CB considers that the demand has started to balance. There will be tightening a little bit more. The CB has significantly closed the credibility gap that has occurred in recent years and taken an important step to establish an inflation-oriented reputation. The CB doesn’t predict a risk to cause by itself regarding the lira and appreciating assets in the lira. On the contrary, it will continue to contribute to a decrease in the country’s risk premium.