What is the latest market situation after the Central Bank’s announcements? Following the Monetary Policy Committee meeting held today at 14:00, the Central Bank announced a rate cut that pushed the US dollar downward. According to post-meeting statements from Central Bank officials, the policy rate was lowered by 75 basis points from 12.00% to 11.25%.
The dollar opened near 5.88 TL and initially moved upward, but after the Central Bank’s announcement it reversed course and fell. As a direct consequence of the policy rate decision, the dollar retreated to around 5.84 TL. By reducing the policy rate by 75 basis points from 12% to 11.25%, the Central Bank’s move affected not only the dollar but also the euro and the pound sterling.
How are exchange rates reacting to the Central Bank’s policy rate announcement?
The Central Bank’s post-meeting statements changed the direction of the foreign exchange market. After opening the morning session at about 5.88 TL, the dollar dropped to roughly 5.84 TL following the announcement.
The Central Bank’s decision also influenced euro and pound sterling prices. Both currencies experienced modest declines: the euro fell by approximately 0.2% and the pound sterling fell by roughly 0.2% after the announcement. Below is a summary of the observed movements in these major currencies following the Central Bank’s announcement.
- Before the announcement: US dollar ~ 5.88 TL; After the announcement: US dollar ~ 5.84 TL
- Euro: down about 0.2% to approximately 6.54 TL after the announcement
- Pound sterling: down about 0.2% to approximately 7.62 TL after the announcement
After the Central Bank implemented a 75 basis point cut to the policy rate, markets reacted as described above. The policy rate was reduced from 12% to 11.25%, a move that contributed to the immediate depreciation of the dollar, euro and pound versus the Turkish lira in the short term.