The Central Bank of the Republic of Turkey announced its interest rate decision and sharp upward movements were seen in the USDT/TRY exchange rate!
CBRT Interest Rate Decision Announced
The Central Bank of the Republic of Turkey (CBRT) announced its interest rate decision at 14:00 today. CBRT increased the interest rate from 8.50% to 15% by raising it by 650 basis points.
The Central Bank of the Republic of Turkey (CBRT) raised the #interest rate to 15%. (Previous 8.50%)
— CO NEWS (@coinotag) June 22, 2023
CBRT, which made an interest rate hike for the first time in 26 months, stated the following;
“Monetary tightening will be gradually strengthened when and to the extent necessary until a significant improvement is achieved in the inflation outlook.”
The expectation of foreign institutions from CBRT was in the range of 20% to 25% for the interest rate. However, it did not happen as expected and CBRT raised the interest rate to 15%. The only bank that made the correct prediction was Société Générale, one of Europe’s main financial companies.
Societe Generale expects the interest rate to continue to be raised in the next two meetings and to be increased to 25%.
Reaction of Tether (USDT) Stablecoin to Interest Rate
The widely used stablecoin pegged to the Dollar, USDT, was trading at 22.60 TL before the interest rate decision was announced. It increased by more than 6.5% and reached 24.09 TL after the announcement of the interest rates. Currently, 1 USDT is 24.08 TL.
