İSTANBUL, March 18 (Reuters) – MUSIAD, one of the umbrella organizations of the business world, stated that it would not be sufficient to continue the fight against inflation only with the policy interest instrument; He said that the steps to be taken from now on should see the course of the business world in terms of investment enthusiasm and debt restructuring.
The Central Bank (CBRT) increased the policy rate of 200 basis points to 19%, above the expectations. Economists who participated in the Reuters survey predicted that the CBRT would increase the policy rate from 17% to 18%, but the hike estimates ranged from 100 to 300 basis points.
In the statement made by MUSIAD after the interest rate decision, “At this point, we believe that it will not be sufficient to continue the fight against inflation only with the policy interest instrument, since the price increases originating from global markets, especially food and commodities, remain outside the Central Bank’s sphere of influence.” It was said.
The statement, “made conjuncture should, and in fact the realization of CBT and Central expectation management forms the basis of banking in this path enters both as a result of Turkey’s primary remediation policies at a level significantly above the front-loading rate hike of market expectations, after investment of steps in the business world will be discarded “It will be necessary to see how it will follow in terms of enthusiasm and debt restructuring.”
Expected When to Start Dollar Buying Auctions
The statement emphasized that the effect of high interest rates on the demand in the domestic market and the appropriate level should be found for the positive operation of foreign trade on behalf of the current account balance, and emphasized that another expectation is the steps to be taken by the Central Bank in dollarization management and when the dollar purchase auctions will start.
In the statement, it was also stated that, in order not to suppress the boom in economic activity, the policy rate, which increased to 19%, should take additional steps, as in the examples of removing the installment limit in housing sales and stretching the limit in automobile sales.
In the statement, it is hoped that the decision to increase interest rates will bring positive results in terms of the independence and governance reputation of the CBRT, especially in foreign markets, and said, “After all, this is a temporary process and a cyclical imperative to achieve a permanent interest rate cut process, together with comforting data in order to keep inflation targets. We would like to evaluate it as “was said.
The business world, who declared that they will support price stability, is followed in the market after the CBRT interest rate hike.
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