The Monetary Policy Committee (PPK) of the Central Bank of Turkey (TCMB) has made an expected decision in its November meeting by raising interest rates by 500 basis points to 40%. With this increase, the policy rate has reached its highest level in the past 20 years.
Led by Hafize Gaye Erkan, the TCMB raised the policy rate to 40% for the sixth consecutive time. The PPK’s decision exceeded market expectations by increasing the interest rate by 500 basis points.
According to the survey results conducted before the TCMB’s PPK meeting, the expectation was 37.5%. However, with the decision taken, the policy rate exceeded expectations and reached 40%.
Contrary to the survey results, a decision was made to increase the interest rate above expectations, and the policy rate reached 40% contrary to economists’ expectations. Economists’ year-end expectation for the policy rate has also reached 40%.
Bitcoin (BTC) reached an all-time high of 1,019,860 against the Turkish Lira on October 24th. After today’s decision, BTC/TRY is seen at 1,084,000. The record highs experienced last month were due to expectations of the approval of a Bitcoin ETF in the US. During this period, Bitcoin prices also rose against the dollar, supporting the situation.