Experts draw attention to next week regarding further increase in dollar TL rate
Experts are concerned about the sharp depreciation of the Turkish lira noting the daily loss of the TL against the dollar is decisively beyond similar currencies by 1 percent. The US dollar, which started the day at 9.73 (against TL) on November 10, climbed to 9.84 swiftly and came close to the record.
At a time when both developing and developed countries in the world are in some way inclined to tighten or reduce their support, the CBRT, tends to relax, unlike the world, despite rising inflation and the depreciating TL.”
Experts note following: “price stability cannot be achieved without a current account surplus, and consumer inflation is expected to remain at the 20 percent, the level it climbed to, in October. Same experts are also concerned that focusing on the current account surplus may further push up the rise in inflation.”
In the short term, it will raise inflation even higher
In the short term, the inflation is expected to increase further, while the government targets to limit the negative impact of inflation on the citizens using more of the budget for minimum wage increases, tax incentives, natural gas, electricity bill and subsidies.
The CBRT to make its next interest rate decision next week
It is reported that many bankers have expressed concern that if the CBRT’s interest rate cuts continue, sudden interest rate increases may be needed in a short time due to inflation and depreciation in the TL.”
The CBRT, on the other hand, has given a message perceived as it will continue with interest rate cuts, not to forget there is a “limited” area left for this till the end of the year. The CBRT will make its next interest rate decision next week.
