Istanbul Stock Exchange: Turkish Central Bank cuts interest rates on lending costs – bank stocks rise
Bank stocks benefit on Monday from a decision by the Turkish Central Bank. This paves the way for interest rate cuts. Inflation remains at a high level.
Turkish bank stocks rose sharply on Monday after the country's central bank unexpectedly cut interest rates on Sunday. The Borsa-Istanbul Banks Index gained up to 4.1 percent before easing to a 3 percent increase. Turkish government bond prices also rose, with yields on 2-year and 10-year bonds falling 58 and 25 basis points respectively.
The central bank said it would restart one-week repo auctions at its benchmark rate of 37 percent, reversing a change made in March. The move may signal the start of an interest rate cut cycle, according to analysts.
Written by urgent.news from Handelsblatt's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
