Central Bank Interest Rate Assessment from Prof. Dr. Binhan Elif Yılmaz

Prof. Dr. Binhan Elif Yılmaz stated that a meaningful interest rate cut step is not expected at the CBRT's upcoming interest rate decision meeting, expressing that postponing the rate cut decision to December would be a more logical approach.

Emphasis on December for Interest Rate Cut

It is known that inflation data in Turkey traditionally follows a lower trend in November and December. It is argued that this picture, which will emerge before the wage increases in January, will prepare a more suitable ground for an interest rate cut.

Credit Loosening and Impacts on the Stock Market

While it is pointed out that going for a general credit loosening in the current conjuncture carries risks, it is stated that the accessibility of selective credits should be increased instead. It is anticipated that a possible interest rate cut will have a limited reflection on the real sector in terms of credit ease, but will create a positive upward effect on Borsa Istanbul.

Borrowing Costs on the Treasury

The high level of the policy rate directly drives up the Treasury's borrowing costs. A structure that continuously borrows in order to service its debt creates fatigue in terms of costs.