Real interest rate

Central banks should not rule out negative rates: IMF

Central banks around the world should not discard negative interest rates policies (NIRP) but instead keep them in their toolkit, even if using such policies is unlikely, the IMF suggested on March 3. 

"NIRP was and remains politically controversial, partly because it is often misunderstood," the global financial body stressed in a new report.

Turkish lira weakens after Central Bank's unexpected rate move

The Turkish Lira slumped after Turkey's Central Bank held interest rates unchanged in an unexpected move, as the bank had been expected to lift rates following the rate hike move from the U.S. Federal Reserve (Fed). 

The lira weakened to 2.9474 against the U.S. dollar after the bank's rate decision, while it had been trading around the 2.91 level before the meeting.

Domestic sales contracting amid Central Bank’s interest moves

With the decrease in domestic demand, particularly in the housing, houseware and automotive sectors, the pressure on the Central Bank for interest rate reduction will remain effective There has been an apparent stagnation in the markets and even a recession in sales, and recent economic statistics confirm this recession.