Deposit returns calculated following Central Bank interest rate decision

While the Central Bank of the Republic of Turkey's Monetary Policy Committee kept the policy rate constant at 37 percent, 32-day deposit interest rates are hovering around 39 percent. While a gradual decline in interest rates is expected until the end of the year, the net return amounts to be provided by 1 million liras have become clear.

Central Bank Interest Rate Decision and Its Rationale

The CBRT Monetary Policy Committee kept the one-week repo auction interest rate, which is the policy rate, at 37 percent at its 6th meeting of the year.

In the statement, it was emphasized that domestic demand is running weak, but risks in energy prices continue to affect inflation.

Market Interest Rate Expectations and Calendar

In the markets, one-point cuts are anticipated in the meetings to be held on October 22 and December 10.

If this scenario materializes, the policy rate is expected to finish the year at the 35 percent level.

Current Situation in Deposit Interest Rates

At major banks, 32-day time deposit interest rates are currently concentrated around the 39 percent level.

Although rates of 41 to 42 percent were seen in some banks in August, a slight decline has been experienced in interest rates recently.

Year-End Return of 1 Million Liras

Daily returns in money market TL funds vary between an average of 0.10 and 0.11 percent.

In the remaining period until the end of the year, an investment of 1 million liras is projected to yield a net income of approximately between 95 thousand and 100 thousand liras.