The TCMB announced that it will decrease its policy rate bringing it to 8.5% from 9%.
The central bank previously announced that it would keep the policy rate stable for a while. The central bank probably aimed to reverse the recent underperformance of the Stock Market. However, this rate cut did not cause the market to rally, unlike the previous cuts. The expected rate cut was a full percentage point, and the market had risen on that expectation, but the announcement caused it to fall. The index closed the day near its opening.
Recently, we've seen the BIST come down to 5000 from its record high of 5700. The volatility is expected to increase in the following months, and the long uptrend that led to the index breaking record after record might have come to an end.
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