Turkey: Central Bank Maintains Policy Approach
The Turkish central bank had a meeting on rates after the May 14 elections. They kept the policy rate at 8.50%, which many people expected. They said the current rate should help the country recover from the earthquakes that happened recently. This decision didn't have much effect on the market because the USD/TRY stayed the same.
After the elections, the CBT tightened security requirements for loans. They included more commercial and consumer loans. But, this was reversed before the election run-off. Regulations and controls for banks remained the same. The CBT's policy change or guidance was important and watched by the market.
CBT's assessment this month was very similar to the last one. The last one happened in April. It was almost the same note.
Experts agree that it's important to adjust how money is managed because there's less flexibility to work with and reserves have gone down by $22.1bn this year, now at $105.1bn as of May 12th. It's important to see if the new government will make changes to the economic plan after the elections.
