[ad_1]
Experts expect the Turkish Central Bank’s decision to cut interest rates by 1% in favor of Egypt, which competes with Turkey and emerging markets to attract foreign investment, especially in debt securities.
Read more
While other analysts believe that the decision has no effect on Egypt because it does not bring anything new in view of the deterioration of the state of the Turkish economy for some time.
In a big surprise, the Turkish Central Bank cut interest rates by 1% last Thursday, to 18%, which some see as a response to pressure from Turkish President Recep Tayyip Erdogan, despite high inflation rates , which reached 19.25% last month. .
The pound fell as much as 1.5% earlier Thursday after the decision, and has been among the worst performing emerging markets for several consecutive years, largely due to the central bank’s shattered credibility, according to CNBC Arabia.
Observers criticized the move by the Central Bank of Turkey, noting that the move ran counter to expectations and led to a deterioration in the price of Turkish currency.
Numan Khaled, analyst and deputy director of Arqaam Capital Investment Bank, said the Turkish Central Bank’s move was on top of the pressure exerted by the Turkish presidency on the Central Bank for political reasons.
Muhammad Abu Basha, deputy director of the research department at Hermes Investment Bank, agreed with him. He told Masrawy that the move, despite his issuance, was contrary to expectations, but it’s not strange for the Turkish Central Bank in light of President Erdogan’s decision. control over the survival or departure of the governors of the bank, depending on their position on the interest rate. “The decision therefore has a very important political component.
Source: Masrawy
[ad_2]
Source link