Thursday, American, British, and Turkish central banks around the world announced interest rate changes. Britain followed the Fed upwards, while Turkey sharply continued its unorthodox "growth policy" by cutting rates double the expected rate change of -0.5 percentage points.
The FED, in line with their policy to fight inflation, announced another 0.75 base point increase on Thursday, further lowering the stock market to its lowest level since 2020. The rate hikes and the bear market are expected to stay for some time. The FED might be risking sending the economy into a recession by these rake hikes, they are walking a tightrope with inflation on one side and growth concerns on the other.
The British Central Bank announced its biggest rate hike since 1982, by increasing rates by 0.5%. The country's economy and currency are suffering amid economic and political struggles.
However, the TCMB cut rates by a full percentage point, shocking many investors' including me who expected a half-point cut. This cut may have been a response to the loss of momentum by the stock market, especially the BIST banking index which has considerably slowed down since August, a record-breaking month for Turkey. However, the rate cut didn't exactly have the desired on the stock market yet. Moreover, the rate cut is almost certain to send inflation to the moon and devaluate the lira even more.
Many Central Banks around the world have been increasing their rates in the last month, the only countries to cut rates recently were Russia, China, Tukey, Japan, and Indonesia.
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