Credit rating agency Moody's stated in its report dated June 20 that they expect the Central Bank of the Republic of Turkey (TCMB) to lower the policy rate to a level close to the deposit rate.
The agency stated that if the expected change in economic policies takes place in Turkey, it will be positive in terms of credit rating and announced that it expects the policy rate to approach the deposit rates.
In the report published by the credit rating agency, "If followed, the transition to an orthodox, rules-based and predictable policy would indisputably be positive for the credit rating."
Moody's, in its report, stated that they expect the policy rate to approach the TL deposit rates, which are around 25-30 percent depending on the maturity, and evaluated that additional interest rate increases will be needed to tighten the monetary policy effectively and at the same time to emphasize that the TCMB is determined to fight the inflation.
The agency also touched upon the macroprudential measures implemented in the last year and said that most of the measures, especially those that have the greatest impact on the profitability of the banking sector, are expected to be lifted gradually.
Comments
No comment yet.